1. Founder and Angel Rounds.

Decide to launch the startup, you file the docs for a C-Corporation and start the company with 20M treasury shares and immediately award yourself 2M shares. After developing a simple prototype of your product, you raised $2 million from an angel for seed financing.

When you pitched the angel round, you and the angel investor agreed that the company had the ability to become a company that was valued at $250M++ 7 years from now. The angel thought that the future 7-year value of the company could well-exceed $250M, but taking into risk, he used an expected value of $200M. To further account for risk, the angel priced out his investment to earn a 20X return. Find

• the dollar amount invested by the seed investor
• the number of shares of stock owned by the Founder
• the seed investors (angels) shares of stock owned
• the total number of shares of stock outstanding.
• the % of the total stock owned by the Founder, the Angel, and the total
• the post-money value of the company in the seed round
• the pre-money value of the company in the seed round
• the price per share paid by the angel

2. Series A Round.

Demonstrating the product to an angel introduced VC, you receive and accept a term sheet for $15M. VC A estimates your value at $350M 6 years from now, and VC A prices out his investment in us to earn a 10X return. Find:

• the dollar amount invested by the Series A investor
• the shares of stock owned by the Founder
• the number of shares owned by the angel
• the number of shares of stock owned by the Series A investor
• the total number of shares of stock outstanding
• the % of the total stock owned by the Founder, the Angel, the Series A investor, and the total.
• the post-money value of the company in the Series A round
• the pre-money value of the company in the Series A round
• the price per share paid by the Series A investor

3. Series B Round.

VC B estimates a company value of $500M within the next 4 years. He requires a 4X return on his investment and is willing to invest $35M in your company. For the VC Series B round, find:

• the dollar amount invested by the Series B investor
• the shares of stock owned by the Founder
• the number of shares owned by the angel
• the number of shares of stock owned by the Series A investor
• the number of shares of stock owned by the Series B investor
• the total number of shares of stock outstanding.
• the % of the total stock owned by the Founder, the Angel, the Series A investor, the Series B investor, and the total.
• the post-money value of the company in the Series B round
• the pre-money value of the company in the Series B round
• the price per share paid by the Series B investor

4. Series C Round.

VC C values your company at $600M within 2 years of IPO. He requires a 2X return and is willing to invest $75M in your company. For the VC Series C round, find:

• the dollar amount invested by the Series C investor
• the shares of stock owned by the Founder
• the number of shares owned by the angel
• the number of shares of stock owned by the Series A investor
• the number of shares of stock owned by the Series B investor
• the number of shares of stock owned by the Series C investor
• the total number of shares of stock outstanding
• the % of the total stock owned by the Founder, the Angel, the Series A investor, the Series B investor, the Series C investor and the total
• the post-money value of the company in the Series C round
• the pre-money value of the company in the Series C round
• the price per share paid by the Series C investor

5. Series IPO Round.

In IPO round, assume that the company sold new shares of stock at $74/share and raised $200M.

For the IPO round, find:

• the dollar amount invested by IPO investors
• the shares of stock owned by the Founder
• the number of shares owned by the angel
• the number of shares of stock owned by the Series A investor
• the number of shares of stock owned by the Series B investor
• the number of shares of stock owned by the Series C investor
• the number of shares of stock owned by the IPO investors
• the total number of shares of stock outstanding
• the % of the total stock owned by the Founder, the Angel, the Series A investor, the Series B investor, the Series C investor, the IPO investors and the total
• the post-money value of the company in the IPO round
• the pre-money value of the company in the IPO round
• the price per share paid by the IPO investor

6. After the IPO round all the shares are now valued at $74, what is the value (market cap) of the company now?

7. Suppose that there were no preference calls, so, if the Founder decided to cash out he would receive his percent of stock owned times the value of the company. What dollar amounts would he have after selling their stock after the Angel round? After the Series A round? After the Series B round? After the Series C round? After the IPO round?