Question
A. You found a great company to buy. You agree to buy the company for $20,000,000. You are going to give yourself a carry and
A. You found a great company to buy. You agree to buy the company for $20,000,000. You are going to give yourself a carry and then bring in an investor to fund the $20,000,000. After you do that, you form a 15% option pool. What does the cap table look like?
| Primary % | Fully Diluted % |
Me |
|
|
Investor |
|
|
Option Pool |
|
|
B. Fill in the yellow blanks
| Question 1 | Question 2 | Question 3 | Question 4 | Question 5 |
Company Pre-money | $12m |
|
|
| $6m |
Company Post-money | $15m | $10m |
| $8m |
|
Mike's Investment |
| $2m | $4m |
| $1m |
Mike's purchase of existing shares |
| $5m |
|
|
|
Mike's ownership (post-investment) |
|
| 20% | 10% |
|
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