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Part C: Multi Stage Financing Samantha and John agree to the simple convertible preferred security. Upon further reflection, they also agree that the company will

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Part C: Multi Stage Financing Samantha and John agree to the simple convertible preferred security. Upon further reflection, they also agree that the company will need another round of financing in addition to the current $5 million. Samantha believes that New Venture will need an additional $3 million in equity in January 2018. Samantha believes that round-two investors will require a pre-money valuation of $65.27 million. Assume that the management option pool (created after Samantha's Series A investment but before the $3M Series B investment) should have the ability to own a 15% share of the company by the end of year 5, and Samantha will insist on maintaining the same ownership level in 2020 as calculated in part A.? a. Based on this new information, what share of the company will the Round 2 investors seek? b. What share of the company should Samantha seek in January 2016 in order to maintain the same ownership as in part A, despite the round B and option pool dilution? What is the implied pre- and post-money valuation and share price of round A in this case? Create a capitalization table to depict the pre-money and post-money valuation, the C. number of shares and the share price: (i) Before Samantha Jones' investment (ii) after Samantha Jones investment but before the creation of the option pool (iii) After the Round 2 investment. Part C: Multi Stage Financing Samantha and John agree to the simple convertible preferred security. Upon further reflection, they also agree that the company will need another round of financing in addition to the current $5 million. Samantha believes that New Venture will need an additional $3 million in equity in January 2018. Samantha believes that round-two investors will require a pre-money valuation of $65.27 million. Assume that the management option pool (created after Samantha's Series A investment but before the $3M Series B investment) should have the ability to own a 15% share of the company by the end of year 5, and Samantha will insist on maintaining the same ownership level in 2020 as calculated in part A.? a. Based on this new information, what share of the company will the Round 2 investors seek? b. What share of the company should Samantha seek in January 2016 in order to maintain the same ownership as in part A, despite the round B and option pool dilution? What is the implied pre- and post-money valuation and share price of round A in this case? Create a capitalization table to depict the pre-money and post-money valuation, the C. number of shares and the share price: (i) Before Samantha Jones' investment (ii) after Samantha Jones investment but before the creation of the option pool (iii) After the Round 2 investment

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