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The VC fund you manage invested m1 in firm F in exchange for 200,000 shares.
The total number number of shares before this financing round was 1,000,000.
(a) 3 years later the next financing round happens in which another fund invests
m2 in exchange for 100,000 newly issued shares. Give an estimate of the yearly
return on your initial investment at that point.
(b) 6 years later, the firm goes public by issuing 200,000 new stocks at 50 per
stock. Give an estimate of the yearly return on your initial investment at that
point.
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