Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Below is a simple capitalization table with three founders who each own various common stock shares. An additional 110,000 shares have been set aside
1. Below is a simple capitalization table with three founders who each own various common stock shares. An additional 110,000 shares have been set aside in an option pool for future hires. Shareholder Oprah Winfrey Sara Blakely Bill Gates Unissued Options Total Common Shares Options 450,000 600,000 210,000 110,000 1,260,000 110,000 Total Fully Diluted 450,000 32.85% 600,000 43.80% 210,000 15.33% 110,000 8.03% 1,370,000 100.00% The company also has two convertible notes with conversion caps (but no conversion discounts): Convertible Debt Holder Shakira Angel Beyonce Angel Conversion Cap Outstanding Balance $ 1,500,000 $ 100,000 $ 2,000,000 $ 250,000 The company now seeks to raise its Seed Round. The founders are seeking $800,000 of additional capital at a pre-money valuation of $5,000,000 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 450,000 600,000 210,000 Shareholder Oprah Winfrey Sara Blakely Bill Gates Shakira Angel Beyonce Angel Tom Hanks Capital Unissued Options Total Total Fully Diluted 450,000 j. 600,000 k. 210,000|I. d. m. a. e. n. c. f. 110,000 110,000 i. O. 110,000 p. g. h. 100.00%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started