Assume the following:

1) The founders own 10 million shares of common stock.

2) Techstars will purchase 6% of common stock for $18,000.

3) The company's valuation cap to be employed for the convertible notes will be $3 million. Assume that all convertible notes have the following direction for how to calculate the capped price per share: The capped price per share is calculated as the quotient resulting from dividing the valuation cap by the number of outstanding shares immediately prior to the Series A round of financing, including all shares of common stock reserved and available for future grant under any equity incentive or similar plan to be created with the Series A round of financing, excluding the shares of equity securities issuable upon the conversion of Notes.

4) Given the company's existing convertible notes totaling $42,500, the total amount of convertible notes will be $142,500 with the Techstars offer.

The company raises $2 million in a Series A round where the company is valued at $10 million. The Series A financing terms include a provision stating that post-Series A, the stock option pool will equal 10% of the company's fully diluted shares.

Tachetare Offar w/ Ontional Canu unta af C1nne Exhibit 6a Techstars Offer Terms, May 2015 Techstars Stock Purchase Offer Techstars Optional Convertible Note Source: Company documents