Alt VC Math
 Share
The version of the browser you are using is no longer supported. Please upgrade to a supported browser.Dismiss

View only
 
ABCDEFGHIJKLMNOPQRSTUVWXYZAA
1
2
Spreadsheet for "Alt VC Math": https://markmcgranaghan.com/alt-vc-math
3
4
Questions / feedback: https://markmcgranaghan.com/contact
5
6
SEAL terms
7
Investment $ 150,000
8
# of founders2
9
The percentage30%
10
Return cap multiple3
11
Return cap $ 450,000
12
Valuation cap $ 3,000,000
13
Founder earnings threshold $ 50,000
14
15
16
17
18
Scenario: zero trajectory
19
Year123
20
Net income $ 30,000 $ - $ -
21
Founder earnings $ - $ - $ -
24
Founder earnings to SEAL $ - $ - $ -
25
Founder earnings to founders $ - $ - $ -
26
Total to SEAL $ (150,000) $ - $ -
27
SEAL IRR
28
29
30
Scenario: low trajectory, no sale, no further financing
31
Year12345678910
32
Net income $ 30,000 $ 50,000 $ 80,000 $ 120,000 $ 170,000 $ 210,000 $ 280,000 $ 380,000 $ 480,000 $ 580,000
33
Founder earnings $ - $ - $ - $ 20,000 $ 70,000 $ 110,000 $ 180,000 $ 280,000 $ 380,000 $ 480,000
36
Founder earnings to SEAL $ - $ - $ - $ 6,000 $ 21,000 $ 33,000 $ 54,000 $ 84,000 $ 114,000 $ 138,000
37
Founder earnings to founders $ - $ - $ - $ 14,000 $ 49,000 $ 77,000 $ 126,000 $ 196,000 $ 266,000 $ 342,000
38
Total to SEAL $ (150,000) $ - $ - $ 6,000 $ 21,000 $ 33,000 $ 54,000 $ 84,000 $ 114,000 $ 138,000
39
SEAL IRR16%
40
41
42
Scenario: middle trajectory, no sale, no further financing
43
Year12345678910
44
Net income $ 30,000 $ 60,000 $ 120,000 $ 180,000 $ 300,000 $ 500,000 $ 900,000 $ 1,300,000 $ 1,600,000 $ 1,900,000
45
Founder earnings $ - $ - $ 20,000 $ 80,000 $ 200,000 $ 400,000 $ 800,000 $ 1,200,000 $ 1,500,000 $ 1,800,000
48
Founder earnings to SEAL $ - $ - $ 6,000 $ 24,000 $ 60,000 $ 120,000 $ 240,000 $ - $ - $ -
49
Founder earnings to founders $ - $ - $ 14,000 $ 56,000 $ 140,000 $ 280,000 $ 560,000 $ 1,200,000 $ 1,500,000 $ 1,800,000
50
Total to SEAL $ (150,000) $ - $ 6,000 $ 24,000 $ 60,000 $ 120,000 $ 240,000 $ - $ - $ -
51
SEAL IRR24%
52
53
54
Scenario: high trajectory, no sale, no further financing
55
Year12345678910
56
Net income $ 100,000 $ 200,000 $ 400,000 $ 800,000 $ 1,200,000 $ 1,600,000 $ 2,000,000 $ 2,400,000 $ 2,800,000 $ 3,200,000
57
Founder earnings $ - $ 100,000 $ 300,000 $ 700,000 $ 1,100,000 $ 1,500,000 $ 1,900,000 $ 2,300,000 $ 2,700,000 $ 3,100,000
60
Founder earnings to SEAL $ - $ 30,000 $ 90,000 $ 210,000 $ 120,000 $ - $ - $ - $ - $ -
61
Founder earnings to founders $ - $ 70,000 $ 210,000 $ 490,000 $ 980,000 $ 1,500,000 $ 1,900,000 $ 2,300,000 $ 2,700,000 $ 3,100,000
62
Total to SEAL $ (150,000) $ 30,000 $ 90,000 $ 210,000 $ 120,000 $ - $ - $ - $ - $ -
63
Total to founders $ - $ 70,000 $ 210,000 $ 490,000 $ 980,000 $ 1,500,000 $ 1,900,000 $ 2,300,000 $ 2,700,000 $ 3,100,000
64
SEAL IRR48%
65
66
67
Scenario: middle trajectory, income multiple acquisition before payback
68
Year123
69
Net income $ 30,000 $ 60,000 $ 120,000
70
Sale proceeds $ 600,000
71
Founder earnings total $ - $ - $ 20,000
74
Founder earnings to SEAL $ - $ - $ 6,000
75
Founder earnings to founders $ - $ - $ 14,000
76
SEAL unpaid cap $ 450,000 $ 450,000 $ 444,000
77
SEAL equity basis $ 450,000 $ 450,000 $ 444,000
78
Sale proceeds to SEAL $ 444,000
79
Sale proceeds to founders $ 156,000
80
Total to SEAL $ (150,000) $ - $ 450,000
81
Total to founders $ - $ - $ 170,000
82
SEAL IRR73%
83
84
85
Scenario: middle trajectory, income multiple acquisition after payback
86
Year12345678
87
Net income $ 30,000 $ 60,000 $ 120,000 $ 180,000 $ 300,000 $ 500,000 $ 900,000 $ 1,300,000
88
Sale proceeds $ 6,500,000
89
Founder earnings total $ - $ - $ 20,000 $ 80,000 $ 200,000 $ 400,000 $ 800,000 $ 1,200,000
92
Founder earnings to SEAL $ - $ - $ 6,000 $ 24,000 $ 60,000 $ 120,000 $ 240,000 $ -
93
Founder earnings to founders $ - $ - $ 14,000 $ 56,000 $ 140,000 $ 280,000 $ 560,000 $ 1,200,000
94
SEAL unpaid cap $ 450,000 $ 450,000 $ 444,000 $ 420,000 $ 360,000 $ 240,000 $ - $ -
95
SEAL equity basis $ 450,000 $ 450,000 $ 444,000 $ 420,000 $ 360,000 $ 240,000 $ 150,000 $ 150,000
96
Sale proceeds to SEAL $ 325,000
97
Sale proceeds to founders $ 6,175,000
98
Total to SEAL $ (150,000) $ - $ 6,000 $ 24,000 $ 60,000 $ 120,000 $ 240,000 $ 325,000
99
Total to founders $ - $ - $ 14,000 $ 56,000 $ 140,000 $ 280,000 $ 560,000 $ 7,375,000
100
SEAL IRR33%
101
102
103
Scenario: high trajectory, income multiple acquisition after payback
104
Year123456
105
Net income $ 100,000 $ 200,000 $ 400,000 $ 800,000 $ 1,200,000 $ 1,600,000
106
Sale proceeds $ 8,000,000
107
Founder earnings total $ - $ 100,000 $ 300,000 $ 700,000 $ 1,100,000 $ 1,500,000
108
Founder earnings SEAL % $ - $ 30,000 $ 90,000 $ 210,000 $ 330,000 $ 450,000
109
Founder earnings SEAL cumulative $ - $ 30,000 $ 120,000 $ 330,000 $ 660,000 $ 1,110,000
110
Founder earnings to SEAL $ - $ 30,000 $ 90,000 $ 210,000 $ 120,000 $ -
111
Founder earnings to founders $ - $ 70,000 $ 210,000 $ 490,000 $ 980,000 $ 1,500,000
112
SEAL unpaid cap $ 450,000 $ 420,000 $ 330,000 $ 120,000 $ - $ -
Loading...