Question
An Angel Investor makes a Seed Round investment of $750,000 in an entrepreneur's venture using a Simple Agreement for Future Equity (SAFE), as shown below.
An Angel Investor makes a Seed Round investment of $750,000 in an entrepreneur's venture using a Simple Agreement for Future Equity (SAFE), as shown below. What does the capitalization table look like for {Founders & Management, Angel Investor, Series A Investor} subsequent to the Series A round of financing under the following two
Scenarios:
1. The entrepreneur raises $4,000,000 from an investor in a Series A round in return for 40% of company's equity. Assume no option pool prior to or concurrent with Series A financing.
2. The entrepreneur raises $4,000,000 from an investor in a Series A round in return for 20% of the company's equity. Assume no option pool prior to or concurrent with Series A financing.
Step by Step Solution
3.47 Rating (157 Votes )
There are 3 Steps involved in it
Step: 1
Capitalization Table A Particulars Total Value Per Share Number of shares of to...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App