Start to finish valuation rounds, percentages and multiples on exit

1. ILLUSTRATIVE CASE: FINANCIAL INVESTMENT ROUNDS AND EXIT
Year of Founder 1 Founder 2 First Second VC % Acquiror TOTAL % AMOUNT TOTAL
investment % % Round Round % BROUGHT COMPANY
Angel % Angel % IN BY VALUE
INVESTOR
Stage 1 Start/Co. Y0 50 50 100% Rs. 10 lakh
Formation
Stage 2 Angel/seed Y1 48 48 4 100% Rs. 10 lakhs Rs.2.5
1 crores
Stage 3 Angel/seed Y2 38.4 38.4 3.2 20 100% Rs. 1 crore Rs.5 crores
2
Stage 4 VC Y3 28.8 28.8 2.4 15 25 100% Rs. 5 crores Rs.20 crores
Stage 5 Exit: Sale to Y6 0 0 0 0 0 100 100% Rs.60 crores Rs.60 crores
company
Amount to investor/owner: Rs. Crore 17.28 17.28 1.44 9 15
Return as a multiple of investment 345.6 345.6 14.4 9 3
Notes:
1) Returns to investors
Angel/seed 1 14.4X in 5 years
Angel/seed 2 9X in 4 years
VC 3X in 3 years
2) Other aspects which are relevant
ESOP impact
Tax/legal impact
Valuation methods
Prepared for illustration only: Anjana Vivek: beanie@venturebean.com