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Valuation: VC Method — From Pre-Money to Dilution
Apply the VC method to value an early-stage startup: exit value, pre-money, post-money, and dilution.
Corporate FinanceAdvancedCalculation
You're an analyst at a Series A VC fund. A founder pitches FoodFlow, a B2B delivery startup for restaurants. They're raising €3M for their Series A. Your fund targets a 10x return over 5 years. Here's the pitch data:
Given
| Current ARR | 800,000 € |
| Projected growth | 70 %/an |
| Exit multiple (ARR) | 8 x |
| Amount raised (Series A) | 3,000,000 € |
| Fund target return | 10 x |
| Estimated dilution (future rounds) | 40 % |
Question 1/5
Step 1. What will FoodFlow's ARR be in 5 years if growth holds?
Your answerEnter a number in €
€
0/5
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