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2. New Ce founders have raised $150,000 from a Series A investor for 22% of the company. The investor has agreed to pay each co-founder
2. New Ce founders have raised $150,000 from a Series A investor for 22% of the company. The investor has agreed to pay each co-founder a salary of $19,000/year for 2 years. The co-founders and Series A investor believe that New Ce can be acquired for $5,500,000 after 2 more years of operation. Complete the Cap Table below and put the correct answers for each shaded box next to the letters below. (20 points) % % Payout d. a. Technical Founder Finance/Operations Founder 60.0% 40.0% b. e. Technical Founder Finance/Operations Founder Investors-Series A Total Equity C. f. Total Equity 100% 100% $ 5,500,000 Acquired for $5.5M After 2 years Lever #1: post money Valuation after Series A= $?? (g) Lever #2: Raise $150,000 for 22% of company Budget for 2 yrs: Each founder salary $19,000/yr Have $22for Operations for 2 years (h) What is the Company's Valuation after Series A? What will be the amount of money for operations over the 2 year period? g. h. Fill out the rest of the Table What will be the final percent ownership for each Founder and the Series A Investor? (put answers next to letters below) What will be the payout for each Founder and the Series A Investor? (put answers next to letters below) . 2. New Ce founders have raised $150,000 from a Series A investor for 22% of the company. The investor has agreed to pay each co-founder a salary of $19,000/year for 2 years. The co-founders and Series A investor believe that New Ce can be acquired for $5,500,000 after 2 more years of operation. Complete the Cap Table below and put the correct answers for each shaded box next to the letters below. (20 points) % % Payout d. a. Technical Founder Finance/Operations Founder 60.0% 40.0% b. e. Technical Founder Finance/Operations Founder Investors-Series A Total Equity C. f. Total Equity 100% 100% $ 5,500,000 Acquired for $5.5M After 2 years Lever #1: post money Valuation after Series A= $?? (g) Lever #2: Raise $150,000 for 22% of company Budget for 2 yrs: Each founder salary $19,000/yr Have $22for Operations for 2 years (h) What is the Company's Valuation after Series A? What will be the amount of money for operations over the 2 year period? g. h. Fill out the rest of the Table What will be the final percent ownership for each Founder and the Series A Investor? (put answers next to letters below) What will be the payout for each Founder and the Series A Investor? (put answers next to letters below)
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