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There is also a worry about the diminishing utility of money. If the really big exits are dominating the figures, then that will make the odds of your startup
by seanc 16y ago
There is also a worry about the diminishing utility of money.
If the really big exits are dominating the figures, then that will make the odds of your startup "solving the money problem" seem larger than they really are.
But for a back-of-envelope calculation this could be a pedantic quibble.
- netcan 16y agoPresent value for $2.5m received in 5 years using a 5% rate (decent, currently) is about $2m. Present value for $2.5m received in 5 years using a 15% rate (say you are accounting for high risk) is about $1.2m. Solved?