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In the trendsetter.com, the company received two term sheets from Alpha and Mega venture funds. For the purposes of this exercise, let's assume that the
In the trendsetter.com, the company received two term sheets from Alpha and Mega venture funds. For the purposes of this exercise, let's assume that the two term sheets were equivalent except for antidilution protection. In other words, let's say that the investment in each case was $ at $ per share of Series A preferred stock. Post Series A financing, the company had a valuation of $ and the following cap table: Common stock shares Series A shares Total shares Don't forget to provide Investment, Share price, and Valuation for each case Question # A new investor offers to invest $ million for onethird of the company's equity. What is the postfinancing value of the company and what does the company's cap table look like in the following cases: a no antidilution protection b full ratchet antidilution protection c weighted average antidilution protection NCP OCP OBNM OCPOB SI NCP new conversion price OCP old conversion price OB number of shares outstanding before this round NM new money being invested in this round SI new shares issued in this round ADP OBAOCPNCPOBA ADP antidilution protection OBA number of Series A shares outstanding before this round NCP new conversion price OCP old conversion price
In the trendsetter.com, the company received two term sheets from Alpha and Mega venture funds.
For the purposes of this exercise, let's assume that the two term sheets were equivalent except for antidilution protection. In other words, let's say that the investment in each case was $ at $ per share of Series A preferred stock.
Post Series A financing, the company had a valuation of $ and the following cap table:
Common stock shares
Series A shares
Total shares
Don't forget to provide Investment, Share price, and Valuation for each case
Question #
A new investor offers to invest $ million for onethird of the company's equity. What is the
postfinancing value of the company and what does the company's cap table look like in the following
cases:
a no antidilution protection
b full ratchet antidilution protection
c weighted average antidilution protection
NCP OCP OBNM OCPOB SI
NCP new conversion price
OCP old conversion price
OB number of shares outstanding before this round
NM new money being invested in this round
SI new shares issued in this round
ADP OBAOCPNCPOBA
ADP antidilution protection
OBA number of Series A shares outstanding before this round
NCP new conversion price
OCP old conversion price
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