Problem: Roughly how much in proceeds does a VC portfolio have to produce to make a $500m Fund successful? If this is all going to come from one company and the VC owns 20%, how big does the exit have to be? Roughly what kind of GRM does the VC have to earn on that one success? Suppose an A-round is $3m invested at a $9m pre-$ valuation. How is ownership divided up after the A-round? After an $8m A-round, common shares represent 62% ownership. What was the A-round valuation? A company raises the following investment rounds from four VCs. VC1 and VC2 split the A-round. VC3 and VC4 lead the B- and C-rounds, respectively. Round Pre-$ Investment Series A 5 4 Series B 13 8 Series C 50 15 Generate the capitalization and ownership tables first assuming that (a) there is no follow-on investment, (b) there is pro-rata follow-on investment, and (c) pro-rata except that VC1 and VC2 only do one-half of their pro-rata in the C-round. In each case, also calculate each investor's GRM if the company sells for $680m. Ignore any liquidation preferences.