Benchmark Capital proposes to invest $20 million in RL Industries for 8 million shares of Series A Preferred Stock. The founders, Ralph Lauren and his wife, Laura Lauren are currently the only shareholders. Ralph and Lauren each own 5 million shares of RL common stock. Benchmark insists that the company issue an Employee Option Pool equivalent to 15% ownership, post-money.

(a) What is the post-money valuation?

(b) What is the pre-money valuation?

(c) Construct a pre-money and post-money Capitalization Table for RL Industries for this transaction.

	Pre-Money			Post-Money
	Shares	$	%	Shares	$	%
Founders - Common
Employee Options
Series A Preferred
Total