Venture Capital Method with Sensitivity Analysis

Venture Capital Method with Sensitivity Analysis
Exit Value ( 1 V )
Base Model
Variation 1
Variation 2
Variation 3
Variation 4
Variation 5
Time to exit ( 2 t )
Base Model
Variation 1
Variation 2
Variation 3
Variation 4
Variation 5
Discount rate ( 3 r )
Base Model
Variation 1
Variation 2
Variation 3
Variation 4
Variation 5
Investment Amount ( 4 I )
Base Model
Variation 1
Variation 2
Variation 3
Variation 4
Variation 5
Number of existing shares ( 5 x )
Base Model
Variation 1
Variation 2
Variation 3
Variation 4
Variation 5
Post-Money ( 6 POST )
Base Model H
Variation 1 h
Variation 2 h
Variation 3 h
Variation 4 h
Variation 5 h
Base Model
Variation 1
Variation 2
Variation 3
Variation 4
Variation 5
Pre-Money ( 7 PRE )
Base Model
Variation 1
Variation 2
Variation 3
Variation 4
Variation 5
Ownership fraction of investors ( 8 F )
Base Model
Variation 1
Variation 2
Variation 3
Variation 4
Variation 5
8 F 1
8 F 2
8 F 3
8 F 4
8 F 5
8 F 6
Ownership fraction of entrepreneurs ( 1-F )
Base Model
Variation 1
Variation 2
Variation 3
Variation 4
Variation 5
Number of new shares ( 9 y )
Base Model
Variation 1
Variation 2
Variation 3
Variation 4
Variation 5
Price per share ( 10 p )
Base Model
Variation 1
Variation 2
Variation 3
Variation 4
Variation 5
Final wealth of investors
Base Model
Variation 1
Variation 2
Variation 3
Variation 4
Variation 5
NPV of investors' wealth
Base Model
Variation 1
Variation 2
Variation 3
Variation 4
Variation 5
NPV of entrepreneurs' wealth
Base Model
Variation 1
Variation 2
Variation 3
Variation 4
Variation 5
Notes:

1. Terminal Value (at time of exit)
2. Time to exit event
3. Amount of investment
4. Discount return used by investors
5. Number of existing shares (owned by the entrepreneurs)
6. Post-Money Valuation: POST = V/(1+r)^t
7. Pre-Money Valuation: PRE = POST - 1
8. Required ownership fraction for the investor: F = I / POST
9. Number of shares the investors require to achieve their desired ownership fraction: y = x[F/(1-F)]
10. Price per share: p = I / y
Should be Empty: