You can adjust the green cells freely

Total Market Size $17,000,000.00

Percentage Captured 40.00%
Operating Margin 60.00%
Years to Exit 5
Compareable P/E 13
Desired IRR 40.00%
Desired Investment $1,000,000.00
Currently Issued Shares 500,000
Yearly Fixed Costs $400,000.00
Capitalization Rate 18%
Fixed costs are only used for comparison purposes in the graph(s). All valuations
only account for variable costs
Capitalization rate is used to determine the residual value in the discounted cash
flow valuations
The Discount Cash Flows require additional input to run which needs to be entered on the
worksheets DCF and DCF2 respectively.
PV of Company Shares to IssueShare Price Weighting
Classic VC Method $6,574,641.52 89692 $11.15 25%
First Chicago Method $5,489,825.67 111363 $8.98 25%
DCF Linear $4,963,235.09 126160 $7.93 25%
DCF Exponential $3,917,250.09 171394 $5.83 25%
1
Average $5,236,238.09 $124,652.15 $8.47
Classic VC Method Evaluation
Estimated PV of Company$6,574,641.52
Shares to Issue to VC 89692
Share Price $11.15
The first Chicago method uses a weighted average of multiple scenarios, in this case three.
Once again you can change the green cells.
Good Exit Mediocre Exit Failure
Percentage of Original Market Capture Estimate 150% 60% 10%
Likelihood of Occurrence 40% 35% 25% 100%
Terminal Net Income $4,080,000.00 $1,632,000.00 $272,000.00
Terminal Value $53,040,000.00 $21,216,000.00 $3,536,000.00
Present Value $9,861,962.28 $3,944,784.91 $657,464.15
Weighted Value $3,944,784.91 $1,380,674.72 $164,366.04
First Chicago Estimated PV of Company $5,489,825.67
Required Ownership % 18.22%
Shares to Issue to VC 111363
Share Price $8.98
Uses the inputed values to calculate DCF when you change the green cell to alter
% of market captured in year one, assumes roughly linear growth.
Initial % of Market Captured 3%
Linear Growth Rate 9.25%
DCF NPV $4,963,235.09
Required Ownership % 20.15%
Shares to issue to VC 126160
Share price $7.93
Year Net Income PV of Cash Flow NPV Residual
1 $204,000.00 $145,714.29 $145,714.29 $2,809,675.86
2 $833,000.00 $425,000.00 $570,714.29
3 $1,462,000.00 $532,798.83 $1,103,513.12
4 $2,091,000.00 $544,304.46 $1,647,817.58
5 $2,720,000.00 $505,741.66 $2,153,559.23



















Don't edit below this line Excel outputs there
Uses the inputed values to calculate DCF when you change the green cell to alter
% of market captured in year one, assumes roughly linear growth.















The graph is generated automatically when the linear discount cash flows are
calculated. Fixed costs are not factored into income.
$0.00
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00
1 2 3 4 5
Yearly Net Income
Fixed Costs
Income
This discount cash flow does not use a linear growth model and allows for
multiple years after investment before product reaches the market place.
Years until cash flow 2
DCF NPV $3,917,250.09
Required Ownership % 25.53%
Shares to issue to VC 171394
Share price $5.83
Year Net Income PV of Cash Flow Residual
1 $0.00 $0.00 $2,809,675.86
2 $0.00 $0.00
3 $680,000.00 $247,813.41
4 $1,360,000.00 $354,019.16
5 $2,720,000.00 $505,741.66
Don't edit below this line Excel outputs there
The graph is generated automatically when the non-linear discount cash flows are
calculated. Fixed costs are not factored into income.
$0.00
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00
1 2 3 4 5
Yearly Net Income
Fixed Costs
Income
The graph is generated automatically when the non-linear discount cash flows are
calculated. Fixed costs are not factored into income.
This worksheet uses the inputed data except Desired IRR
Once again change the green cell. Excel alters the orange cell automatically
Calculated Goal
IRR 111% 50%
VC Ownership % 118.19%
Final Value of VC Investment $41,792,658.23
Shares to Issue to VC -3248475
Share Price -$0.31
This sheet uses all the inputed data but Desired Investment.
Once again change the green cell. Excel alters the orange cell automatically
Calculated Goal
VC Investment $2,887,733.33 $600,000
VC Ownership % 44%
Final Value of VC Investment $15,530,922.92
Shares to Issue to VC 391620
Share Price $7.37
This sheet uses all the inputed values but Desired Investment
Change the green cell, Excel changes the orange
Calculated Goal
Founder Ownership % 84.42% 25%
VC Money Available $1,024,536.67
VC Ownership % 15.58%
Shares to Issue to VC 92299
Share Price $11.10
Interim Calculations
Orange Cells used by Macros
Terminal Net Income $2,720,000.00
Terminal Value $35,360,000.00
Required Ownership % 0.152099548
Last Row Of Data 14
Last Row Of DCF 14
Last Row Of DCF2 14
DCF Fixed Costs
$400,000.00
$400,000.00
$400,000.00
$400,000.00
$400,000.00