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Part 1 Pre and Post Money Valuation Newco is formed with 500,000 shares Shareholder $ $/sh Shares % Founder 500,000 100.0% Total 500,000 100.0% 1.0

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Part 1 Pre and Post Money Valuation Newco is formed with 500,000 shares Shareholder $ $/sh Shares % Founder 500,000 100.0% Total 500,000 100.0% 1.0 Investor 1 proposes to invest $500,000 for 60% of the company. 1.1 What is the Founder's % ownership, after the proposed investment? 1.2 How many total shares does the company have outstanding after the proposed investment? 1.3 What is the share price? 1.4 What is the post money valuation? 1.5 What is the pre money valuation? Part 2 Options Newco is formed with 500,000 shares 2.0 Investor 1 proposes to invest $600,000 for 60% of the company. But requires there to be a stock option pool of 15% for management before its investment. 2.1 What is the Founder's % ownership, after the proposed investment with the options? 2.2 Assume Investor 1 allows the stock options to be issued after its investment, what is the Founders % ownership (may need a new cap table)? Part 3 Anti-Dilution Newco is formed with 500,000 shares. In round one Investor 1 invest $1,250,000 for 60% of the company. Recommend building cap tables

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