Explain the difference between fully diluted and primary shares.

You invest $10,000 to start a company and issue yourself 100,000 shares. A year later you raise

$1,000,000 from Firm A according to a pre-money valuation of $5,500,000. Following that

investment, some of your friends are interested in participating and you issue them 2% of the

company when they invest $200,000.

What was Firm As price per share?

What is the post-money after Firm As investment?

Assuming your friends do invest, how many shares would they be issued?

What is the new price per share according to your friends investment?

How many shares are issued in total?

For the friend round:

Pre-money: ______________

Post-money: _____________

After the friend round, what does the cap table look like?