a.

b.

c.

d.

e.

f.

g.

h.

2. (20 points) NewCo founders have raised $75,000 from a Series A investor for 20% of the company. The investor has agreed to pay each co-founder a salary of $15,000/year for 2 years. The co-founders and Series A investor believe that NewCo can be acquired for $3,000,000 after 2 more years of operation. Complete the Cap Table below and fill in the shaded boxes. Each shaded box should contain an answer. (20 points) Start Company Series A Angel Financing Payout Technical Founder Finance/Operations Founder 75.0% 25.0% b . e. Technical Founder Finance/Operations Founder Investors-Series A Total Equity Total Equity 100% 100% $ 3,000,000 $?? Acquired for $3M After 2 years Lever #1: post money Valuation after Series A Lever #2: Raise $75,000 for 20% of company Budget for 2 yrs Each founder salary $15,000/yr Have $22for 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? Fill out the rest of the Table h. What will be the payout for each Founder and the Series A Investor? (put answers next to letters below) What will be the final percent ownership for each Founder and the Series A Investor? (put answers next to letters below)