Question
A VCPE firm is considering a $10M Series A investment for 5M shares of preferred stock at $2 per share. The proposed capitalization table for
A VCPE firm is considering a $10M Series A investment for 5M shares of preferred stock at $2 per share. The proposed capitalization table for the new venture is as follows:
Pre-financing | Post-financing | |
No. of Shares | No. of Shares | |
Founder (Common) | 7,750,000 | 7,750,000 |
Employee Stock Pool (Common)
Issued Unissued | 2,250,000 300,000 1,950,000 | 2,250,000 300,000 1,950,000 |
Series A (Preferred) | 0 | 5,000,000 |
a. What is the pre-money valuation? (4 Points)
b. What is the post-money valuation? (4 Points)
c. What is the fully diluted share count? (4 Points)
d. What is the proposed ownership percentage of Series A investor? (4 Points)
e. What is the diluted percentage of the founder post-financing? (4 Points)
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