INNOVATION AND COMMERCIALIZATION INDIVIDUAL ASSIGNMENT #5: CAPITALIZATION ANALYSIS Assigned: must be submitted on D2L prior to the start of class Due Date Objective: The objective of this individual assignment is to develop a capitalization table for an early stage venture through multiple rounds of financing to ustrate the impacts of outside investment on ownership percentages and the value of each owner in the company For individual assignments, students are expected to turn in work that is their own Consultation among students for both individual and team assignments is encouraged however, deliverables including individual write ups and spreadsheets should be developed independently by each student. Create a capitalization table that shows: 1) the equity holders (owners), 2) the number of Assignment shares owned by each party, 3) the equity ownership percentage, and 4) value n dollars) for eac owner at the end of each of 6 stages of venture finance n the case where ownership is vested over a period of time, calculate ownership based on a fully diluted value e, assume that all the shares vest immediately) Stage 1: Company Formation Fresh with their knowledge from completing their degrees at uWM and emboldened by the engaging new venture course they completed in the spring of 2017, two UWM entrepreneurs decide to launch a company. The company will produce a software tool to help manage social media profiles, "Profile Filter." This innovative tool will be marketed to new college students who want to give their parents the illusion of knowing what's happening while their children are away at college. The customized "Parent Profile" will automatically translate postings to parent-friendly versions The picture of a raucous house party featuring their precious offspring swilling beer will be automatically transformed into the same participants doing volunteer work at a neighborhood children's center. The program will employ advanced facial recognition software and highly realistic virtual reality environments. Recognizing their complementary strengths, the two ntrepreneurs found a company (using an LLC structure commonly employed by startups that Founder 1 contributes $7000 in cash for operating capital and Founder 2 anticipate fund-raising contributes a computer and software that they agree also has a value of $3000 Stage 2: Angel Investment. The entrepreneurs know the importance of discovery to entrepreneurs as well as a structured approach, so they create a business model canvas to develop their plan. For the next three months, the entrepreneurs test the market, refine their proposed product offering and create a development plan for their minimum viable product that they wi I used to enter the market. They do extensive research on the UWM campus although it is hard to find beer swilling freshmen among UWM's studious undergraduate population they manage to reach their potential customers and test their assumptions regarding the value of the business, the key product features and the minimum viable produc One of the founders knows a little about software development, so they cobble together a prototype of the code It has limited facial recognition features and the virtual reality simulations are a little crude, but the product is good enough to demonstrate UWM I nnovation and Co mmercia atio Individual Assignment #5: Capitalization Analysis INNOVATION AND COMMERCIALIZATION INDIVIDUAL ASSIGNMENT #5: CAPITALIZATION ANALYSIS Assigned: must be submitted on D2L prior to the start of class Due Date Objective: The objective of this individual assignment is to develop a capitalization table for an early stage venture through multiple rounds of financing to ustrate the impacts of outside investment on ownership percentages and the value of each owner in the company For individual assignments, students are expected to turn in work that is their own Consultation among students for both individual and team assignments is encouraged however, deliverables including individual write ups and spreadsheets should be developed independently by each student. Create a capitalization table that shows: 1) the equity holders (owners), 2) the number of Assignment shares owned by each party, 3) the equity ownership percentage, and 4) value n dollars) for eac owner at the end of each of 6 stages of venture finance n the case where ownership is vested over a period of time, calculate ownership based on a fully diluted value e, assume that all the shares vest immediately) Stage 1: Company Formation Fresh with their knowledge from completing their degrees at uWM and emboldened by the engaging new venture course they completed in the spring of 2017, two UWM entrepreneurs decide to launch a company. The company will produce a software tool to help manage social media profiles, "Profile Filter." This innovative tool will be marketed to new college students who want to give their parents the illusion of knowing what's happening while their children are away at college. The customized "Parent Profile" will automatically translate postings to parent-friendly versions The picture of a raucous house party featuring their precious offspring swilling beer will be automatically transformed into the same participants doing volunteer work at a neighborhood children's center. The program will employ advanced facial recognition software and highly realistic virtual reality environments. Recognizing their complementary strengths, the two ntrepreneurs found a company (using an LLC structure commonly employed by startups that Founder 1 contributes $7000 in cash for operating capital and Founder 2 anticipate fund-raising contributes a computer and software that they agree also has a value of $3000 Stage 2: Angel Investment. The entrepreneurs know the importance of discovery to entrepreneurs as well as a structured approach, so they create a business model canvas to develop their plan. For the next three months, the entrepreneurs test the market, refine their proposed product offering and create a development plan for their minimum viable product that they wi I used to enter the market. They do extensive research on the UWM campus although it is hard to find beer swilling freshmen among UWM's studious undergraduate population they manage to reach their potential customers and test their assumptions regarding the value of the business, the key product features and the minimum viable produc One of the founders knows a little about software development, so they cobble together a prototype of the code It has limited facial recognition features and the virtual reality simulations are a little crude, but the product is good enough to demonstrate UWM I nnovation and Co mmercia atio Individual Assignment #5: Capitalization Analysis