Complete the following table based on these events. Calculate the ownership percentages and entrepreneur values during various funding stages. What were the payout values

a. Three entrepreneurs, E1 (30%), E2 (20%), E3 (50%) invest $100,000 (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.

b. When the firm's product sales increase faster than expected family and friends invest another $300,000 based on the firm's revised $800,000 valuation.

c. 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 20% of the firm based on a $2 million valuation.

d. The next day the Angel investor convinces some VCs with deeper pockets to also participate in the venture for another 30% at the same $2 million valuation.

e. 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 $2 million the following year when the firm's valuation has reached $5 million.

 

Event E1 VC VC E2 E3 FF Angel 1 2 Total Valuation Entrepreneur's Value Founder F+F Angel VC 1 VC 2 Payout 100% $100,000 $100,000