Question 1: The plan is for Unicorn to go public in six years. As noted in the table below, the company expects to see first sales of $10M this current year. Over the next five years this will grow to approximately $5.6B in year six. Management of Unicorn have produced the following sales forecast for Unicorn, with FY1 being the first year of sales: FY1 FY2 FУЗ FY4 FY5 FУ6 Forecast $10.0 1,428.8 3,086.5 5,598.2 340.5 62.0 Revenues ($M) Growth yoy (%) n/a 116 520 449 320 81 An intern who works for your fund has collected data on companies that have recently gone public, that operate in the Unicorn's industry - saving you the need to do so. The data is on the tab "Coparables". On this sheet, Comparable 1 through 60 are the unimaginatively named comparable companies. Columns FY1 shows the comparables' revenues in their year of first sale. FY2 is the second year, and so on.

Question 1: The plan is for Unicorn to go public in six years. As noted in the table below, the company expects to see first sales of $10M this current year. Over the next five years this will grow to approximately $5.6B in year six. Management of Unicorn have produced the following sales forecast for Unicorn, with FY1 being the first year of sales: FY1 FY2 FУЗ FY4 FY5 FУ6 Forecast $10.0 1,428.8 3,086.5 5,598.2 340.5 62.0 Revenues ($M) Growth yoy (%) n/a 116 520 449 320 81 An intern who works for your fund has collected data on companies that have recently gone public, that operate in the Unicorn's industry - saving you the need to do so. The data is on the tab "Coparables". On this sheet, Comparable 1 through 60 are the unimaginatively named comparable companies. Columns FY1 shows the comparables' revenues in their year of first sale. FY2 is the second year, and so on.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter10: Valuing Early-stage Ventures

Section: Chapter Questions

Problem 2EP

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