Assuming a $24 million exit, Calculate Red Baron Venture Partner's common share proceeds using the Red Baron
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Comparison of Term Sheets Top Gun Term Pre-money Valuation Investor Equity Share Founders' Equity (diluted) Employee Pool Investment Amount Split Round Security Type Liquidation preference Participation ● Dividends Automatic Conversion Conversion Rate Anti-dilution Board Composition Founder Vesting Pay-to-Play Fees for Diligence $5M 48.5% 26.48% 25% $4M No Convertible Preferred 1X No 8% annual, pari passu $40M offer price Pre-$ value $300M >50% preferred appr 1:1 Weighted Average 1 of 3 chosen by investors Not addressed No Up to $30,000 Red Barron $6M 53.3% 31.7% 15% $6M Yes, 2nd VC investor Convertible Participating Pref'ed 1X Capped at 2.5X As converted $30M offer price 5X original purchase >66% preferred appr 1:1 Full Ratchet 2 of 3 chosen by investors 4 years Yes Up to $30,000 Preference Red Barron Top Gun Red Baron Red Baron Top Gun Top Gun Red Baron Equal Top Gun Top Gun Top Gun Red Baron Top Gun Comparison of Term Sheets Top Gun Term Pre-money Valuation Investor Equity Share Founders' Equity (diluted) Employee Pool Investment Amount Split Round Security Type Liquidation preference Participation ● Dividends Automatic Conversion Conversion Rate Anti-dilution Board Composition Founder Vesting Pay-to-Play Fees for Diligence $5M 48.5% 26.48% 25% $4M No Convertible Preferred 1X No 8% annual, pari passu $40M offer price Pre-$ value $300M >50% preferred appr 1:1 Weighted Average 1 of 3 chosen by investors Not addressed No Up to $30,000 Red Barron $6M 53.3% 31.7% 15% $6M Yes, 2nd VC investor Convertible Participating Pref'ed 1X Capped at 2.5X As converted $30M offer price 5X original purchase >66% preferred appr 1:1 Full Ratchet 2 of 3 chosen by investors 4 years Yes Up to $30,000 Preference Red Barron Top Gun Red Baron Red Baron Top Gun Top Gun Red Baron Equal Top Gun Top Gun Top Gun Red Baron Top Gun
Expert Answer:
Answer rating: 100% (QA)
To calculate Red Baron Venture Partners common share proceeds we need to consider the terms outlined ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these finance questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
EG Corporation redeemed 200 shares of stock from one of its shareholders in exchange for $200,000. The redemption represented 20% of the corporation's outstanding stock. The redemption was treated as...
-
The table gives data concerning the shrink fit of two cylinders of differing materials and dimensional specification in inches. Elastic constants for different materials may be found in Table A5....
-
Finns Seafood Restaurant has been approached by New England Investments, which wants to hold an employee recognition dinner next month. Lillian Sumner, a manager of the restaurant, agreed to a charge...
-
Happy Days Medical Devices has a bond outstanding that has an 8 percent coupon rate and a market price of $912.35. If the bond matures in 15 years and interest is paid semiannually, what is the YTM?...
-
Wells Company reports the following sales forecast: September, $ 55,000; October, $ 66,000; and November, $ 80,000. All sales are on account. Collections of credit sales are received as follows: 20%...
-
Joan has an antique ring her grandmother gave to her that has been passed down for se generations. What type of insurance does Joan need for the ring? O An endorsement OA peril A homeowner's policy
-
Ellipses Corp is a small business that operates in Herndon, VA. The company is located at10 Period Lane, Herndon, VA 20170. Its federal Employer Identification Number is 77-7777777, and its...
-
In this problem, assume that the distribution of differences is approximately normal. Note : For degrees of freedom d . f . not in the Student's t table, use the closest d . f . that is smaller . In...
-
1.What is the point value of the Bank Bill Futures contract traded on the Australian Securities Exchange? 2.What is the expiry date of the current 10-year government bond futures contract traded on...
-
A family amortizes a mortgage of $420, 000 with monthly payments of j2 = 3.2% for 22 years. Determine the final payment made. A reminder that marks are only given for work shown. If done by EXCEL, no...
-
Assume we have a stock currently worth $50. We also assume the interest rate is zero, and we can buy options for this stock with a strike price of $50. If the stock can rise or fall by $10 with equal...
-
Explain any five distinction between a Mutual Fund Company and a Venture Capital Company 2. How do you differentiate the primary market from the secondary market? ( List out any five distinction...
-
A firm has a return on equity of 10%, Earnings per share of $2 and is expected to pay $0.5 per share annual dividend. If you require 12.5% rate of return, how much are you willing to pay for this...
-
Problem 7.6 Student Name: Student ID: (include your ID number to the title of your response file-excel) Hawaii's Surfing Views Hotel has three selling departments: rooms, restaurants and bars. Some...
-
d. The characteristic equation of a control system is given by s+2s+8s+12s+20s+16+16=0. Determine the number of the roots of the equation which lie on the imaginary axis of s-plane
-
a. From a strategic perspective, discuss why you believe Disney would make this acquisition. b. Assuming that the assets and liabilities of Marvel approximate their individual fair values at the date...
-
Exhibit 8.29 presents the separate financial statements at December 31, 2015, of Prestige Resorts and its 80%-owned subsidiary Booking, Inc. Two years earlier on January 1, 2014, Prestige acquired...
-
Visa Inc., a credit card company, reported income tax expense of $1,648 million for Year 1, comprising $1,346 million of current taxes and $302 million of deferred taxes. The balance sheet showed...
-
Hawk Skateboards is considering building a new plant. Robert Optimist, the company's marketing manager, is an enthusiastic supporter of the new plant. Roberta Wunder land, the company's chief...
-
Bolus Company is considering the purchase of a new machine. The invoice price of the machine is \($112,000\), freight charges are estimated to be \($3,000\), and installation costs are expected to be...
-
Lafluer Corp. is thinking about opening a soccer camp in southern California. In order to start the camp, the company would need to purchase land, and build four soccer fields and a dormitory-type...
Study smarter with the SolutionInn App