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2. NewCo founders have raised $85,000 from a Series A investor for 12.5% of the company. The investor has agreed to pay each co-founder a
2. NewCo founders have raised $85,000 from a Series A investor for 12.5% of the company. The investor has agreed to pay each co-founder a salary of $12,000/year for 2 years. The co-founders and Series A investor believe that Newco can be acquired for $5,000,000 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) Start Company Series A Angel Financing 96 Payout d. Technical Founder Finance/Operations Founder 62.5% 37.596 Technical Founder Finance/Operations Founder Investors- Series A Total Equity a. b. C. e. f $ Total Equity 100% 100% 5,000,000 Acquired for SSM After 2 years Lever #1: post money Valuation after Series A=$?? Lever #2: Raise $85,000 for 12.5% of company Budget for 2 yrs Each founder salary $12,000/yr Have $22 for Operations for 2 years What is the company's Valuation after Series A? What will be the amount of money for operations over the 2 year period? 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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