VA Flow | rpventures

Valuation Algorithm (VA)

The VA derived from the Venture Capital Formula shown below.

To justify putting its capital at risk by making this investment,the venture capital firm must own enough of the company at exit to realize its projected internal rate of return.

Calculated Risk Level

Time to Exit (TTE)

Cummulative Return (%)

Initial Investment ($)

Expected Nominal Return ($)

Projected Inflation (%)

Expected Real Return ($)

Expected Net Income at TTE

Prevelent P/E Ratio

Implicit Valuation ($)

Expected Real Return ($)

Required Investors' Equity