Calculate the ownership percentages and entrepreneur values during various funding stages. (100 marks)

1. Three entrepreneurs, E1 (30%), E2 (20%), E3 (50%) invest $200,000 (100%) in a new venture. They agree to maintain the 30/20/50 percentage breakdown. That is among the three the relative percentage breakdown will remain the same.
2. When the firm's product sales increase faster than expected family and friends

invest another $300,000 based on the firm's revised $900,000 valuation.

3. Success continues and the partners decide that they need to invest in a new warehouse in the United States which represents a new opportunity for the firm. The partners agree to provide an Angel investor with 15% of the firm based on a $1.5 million valuation.
4. The next day the Angel investor convinces some VCs with deeper pockets to also participate in the venture for another 30% at the same $1.5 million valuation.
5. With the firm doing so well the VCs realize that the firm should enter overseas markets before a competitor makes its move and invest another $3 million the following year when the firm's valuation has reached $7.5 million.

6. Event	E1	E2	E3	FF	Angel	VC 1	VC 2	Total	Valuation	Entrepreneurs Value
   Founder								100%	$200,000	$200,000
   F+F
   Angel
   VC 1
   VC 2
   Payout