10 ms·
$10M in funding implies a valuation of $50-100M, which means a 4-8x return not a 40x return.
by calcsam 10y ago
$10M in funding implies a valuation of $50-100M, which means a 4-8x return not a 40x return.
- dkrich 10y agoAlso, I'm pretty sure that investment wasn't for 100% ownership, so it's not like that $10 million turned into $400 million. The return would have to be proportional to ownership percentage.
- jtmarmon 10y agoyes that's exactly what the parent is saying. 10M at a 100M post money valuation is 10% of the company. 10% of 400M is 40M - a 4x return