Explain capitalization tables for the following two different scenarios and explain the term of "dilution" and what it means for the entrepreneurs: (15) a. Rose and Wise choose Techstars offer and the optional convertible note described in case Exhibit 6a. b. Rose and Wise choose the Founder.org offer described in case Exhibit 6b

Lovepop Valuation - 818706-XLS-ENG.xlsx 7:27 PM 1 A B C D E F G H J K L 2 3 4 Seed Round Conv Notes Founder.org Offer Option Pool Series A 5 # % # % # 6 ders 10.000.000 7 Convertible Notes 1.326.395 88,29% 11,71% 10.000.000 77,25% 10.000.000 8 < Option Pool 1.326.395 1.618.056 10,25% 12,50% 1.326.395 % 61,80% 8,20% 1.618.056 10,00% 9 S A VC 3.236.113 20,00% 10 11.326.395 100,00% 12.944.451 100,00% 16.180.564 100,00% 11 12 13 Valuation Cap 3.000.000 14 Investment 15 Share price 18 23 24 25 67622222222 16 Share price check 342.500 0,258 0,258 19 s A Investment s A Post Money Valuation 20 s A Share Price 21 s A share price check Grey cells are data that is given, everything else is calculated. 2.000.000 0,618 0,618 10.000.000 N 18.5KB/s D P Q S R . 39 T U V W X Q