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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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