3.0 In the next round (round two), the company raises $1,250,000 for 50% of the company from Investor 2. 3.1 How many shares will Investor 2 receive and at what price? 3.2 What % ownership will Investor 1 end up with after round two, without anti-dilution protection? 3.3 What is the post-money valuation? 3.4 How many shares and what % ownership effectively will Investor 1 end up with after round two, with Full Ratchet Anti-dilution protection (do not need to adjust Investor 2 shares)? 3.5 What is the post-money valuation? Part 4 Participating Preferred Assumptions Series A Preferred Amount $3.00 $3.00 Ownership 25% 25% Sale Price $9.00 $15.00 4.0 Questions 4.1 If the company sells for $9.0 million, what would the holder of the Series A receive under the Conventional Liquidation Preference? And the remaining shareholders? 4.2 If the company sells for $15.0 million, what would the holder of the Series A receive under the Conventional Liquidation Preference? And the remaining shareholders? 4.3 If the company sells for $9.0 million, what would the holder of the Series A receive under the Participating Preferred Liquidation Preference? And the remaining shareholders? 4.4 If the company sells for $15.0 million, what would the holder of the Series A receive under the Participating Preferred Liquidation Preference? And the remaining shareholders? Part 5 Venture Capital Method Valuation NEWCO Projected Revenue in 5 years $100.0 million Profit Margin 25% Valuation Multiple (profit margin) 8X Investment Amount $5.0 million 5.0 Question based on the assumptions, what % ownership of the company will the VC require; 5.1 If the investor requires returns of 10% its money? What % ownership of the company does it require? 5.2 If the company had 1,000,000 shares outstanding, how many shares would need to be issued and sold