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Can you answer this one question which has 3 parts. (Shouldn't take more than 5 mins) 1. Consider the following Capitalization (CAP) table for ABC
Can you answer this one question which has 3 parts. (Shouldn't take more than 5 mins)
1. Consider the following Capitalization (CAP) table for ABC Technology, Inc.: (10 points) Shareholder Shares Before Co-founder 1 Co-founder 2 Co-founder 3 Stock Options XYZ Ventures, LP Total 150,000 150,000 100,000 25,000 0 35.3 35.3 23.5 5.9 0 425,000 100 a. % Undiluted % Fully Diluted Shares After Investment % Fully Diluted If the stock options are authorized but not issued or outstanding, what undiluted percentage of the company does each shareholder own before XYZ Ventures, LP invests? (2) b. If XYZ Ventures, L.P invests $1,500,000, and pays $20 per share, complete the CAP table on a fully diluted basis. (5) c. What is the pre-money and post-money valuation? (3)Step by Step Solution
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