How do I know the discount rate to use for the post value since it gives two?
The founders think that the company can be sold in INR 180 million after five years. Paul has discussed with them the terms and conditions of the venture capital investment. Currently, the founders have 200,000 shares with them. They want the venture capital investment in two stages. In the first stage, they will need INR 10 million, and in the second stage, they will require additional INR 20 million. The money for the first stage will be given right now and the second stage money will be provided at the beginning of the third year.
Paul thinks that the investment has a high amount of risk due to changing government regulations in the education sector and lack of entrepreneurial experience for Indian companies. He thinks that a discount rate