DINO-FI CAP TABLE

	Shares	% ownership
Founders Common
Richard	40	50%
Erlich	40	25%
Bertram	20	25%
subtotal	100	100%

Note: SAFE note outstanding to Richard. Principal = $52,000, 50% pre-money discount.

Term sheet offer (Peace River Angels)

• Investment: $0.5M
• Post-money valuation: $4M
• Security: Series A Preferred Shares
• Liquidation preference: 1x non-participating
• Conversion: 1:1 Preferred:Common
• Dividends: 6% cumulative
• Board Seats: 2-2-1 (two founders, two investors, one independent)

Apply the Rich versus King framework to the Term Sheet offer from Peace River Angels. In your discussion, contrast how a Rich-focussed investor and a King-focussed investor would interpret and analyze the Term Sheet from the Peace Reiver Angels. Assume that the future growth of the business is limited without any investment from Peace River Angels.

Please analyze the term sheet information provided, using these two perspectives:

RICH. Analyze the Term Sheet presented by the Peace River Angels through the lens of a Rich-focussed entrepreneur. What aspects of this Term Sheet are favourable or unfavourable to a Rich-focussed entrepreneur?

KING. Analyze the Term Sheet presented by the Peace River Angels through the lens of a King-focussed entrepreneur. What aspects of this Term Sheet are favourable or unfavourable to a King-focussed entrepreneur?