1. Below is a simple capitalization table with three founders who each own various common stock shares. An additional 100,000 shares have been set aside in an option pool for future hires, for a total of 2,300,000 shares. Shareholder Oprah Winfrey Sara Blakely Bill Gates Unissued Options Total Common Shares Options 500,000 800,000 900,000 100,000 2,200,000 100,000 Total Fully Diluted 500,000 21.74% 800,000 34.78% 900,000 39.13% 100,000 4.35% 2,300,000 100.00% The company also has two convertible notes with conversion caps (but no conversion discounts): Convertible Debt Holder Conversion Cap Outstanding Balance Shakira Angel $ 2,000,000 $ 450,000 Beyonce Angel $ 3,000,000 $ 450,000 The company now seeks to raise its Seed Round. The founders are seeking $750,000 of additional capital at a pre-money valuation of $6,000,000 and Tom Hanks Capital agrees to those terms. They will also convert the debt from Shakira Angel and Beyonc Angel into the seed round as part of the transaction. Fill in the capitalization table below after the transaction has been completed. Put the correct value next to each Letter below the table. (16 points). Common Shares Seed Preferred Shares Options 500,000 800,000 900,000 Shareholder Oprah Winfrey Sara Blakely Bill Gates Shakira Angel Beyonce Angel Tom Hanks Capital Unissued Options Total Total Fully Diluted 500,000; 800,000 k. 900,000 1. d. m. a. b. e. n. C. f. 100,000 100,000 i. 0. 100,000 p. h. 100.00% 1. Below is a simple capitalization table with three founders who each own various common stock shares. An additional 100,000 shares have been set aside in an option pool for future hires, for a total of 2,300,000 shares. Shareholder Oprah Winfrey Sara Blakely Bill Gates Unissued Options Total Common Shares Options 500,000 800,000 900,000 100,000 2,200,000 100,000 Total Fully Diluted 500,000 21.74% 800,000 34.78% 900,000 39.13% 100,000 4.35% 2,300,000 100.00% The company also has two convertible notes with conversion caps (but no conversion discounts): Convertible Debt Holder Conversion Cap Outstanding Balance Shakira Angel $ 2,000,000 $ 450,000 Beyonce Angel $ 3,000,000 $ 450,000 The company now seeks to raise its Seed Round. The founders are seeking $750,000 of additional capital at a pre-money valuation of $6,000,000 and Tom Hanks Capital agrees to those terms. They will also convert the debt from Shakira Angel and Beyonc Angel into the seed round as part of the transaction. Fill in the capitalization table below after the transaction has been completed. Put the correct value next to each Letter below the table. (16 points). Common Shares Seed Preferred Shares Options 500,000 800,000 900,000 Shareholder Oprah Winfrey Sara Blakely Bill Gates Shakira Angel Beyonce Angel Tom Hanks Capital Unissued Options Total Total Fully Diluted 500,000; 800,000 k. 900,000 1. d. m. a. b. e. n. C. f. 100,000 100,000 i. 0. 100,000 p. h. 100.00%
