Startup GH, an OSU Riata Center Student startup incubator business has internally been developing a software APP to electronically identify volunteer opportunities, document participation, report, and track required "volunteer hours" for each students at private and/or parochial High Students. The "Volunteer Me" App will stream-line and simplify the entire "reporting & tracking" for parents, students, and High School Administrators. Information, regarding a student's cumulative participation, will be continuously accessible and auditable by any party, which is critical given High School Diplomas are typically withheld if this community service requirement is not fulfilled. Conversion to this electronic reporting platform will simplify/eliminate data entry & reporting burdens for BOTH the non-profit organizations, at which student volunteer, and the High Schools. The bottom line is that the App reduces labor costs, improves transparency, and enhances the overall accuracy of the reporting system by eliminating redundant data entry & paperwork. The Founder, a Senior Entrepreneurial major, after extensive End User interviews with all participants just completed designing the overall software system architecture. Since this student has very limited discretionary capital, he/she elected to pursue a "bartering" strategy. They effectively identified two OSU student Computer Science programming majors ironically in search of a "concept" for their Senior Design Capstone project Therefore, in addition to receiving equity in the Startup, in exchange for completing the software APP, these two college students will benefit from a course perceptive. A true "win/win" alignment of resources. Additionally, the Entrepreneurial Senior will likewise benefit relative to the student programmers needing to hit or achieve developmental deadlines given the dual Course Capstone grade requirements. A true "win/win" approach. After reviewing the software system design and Business Plan, all the parties agreed the "cash value" or assigned capital equivalent associated with developing the software APP would be $30,000. However, Student Programmer #1 planned to write 70% of the software code, while Student Programmer #2 would complete the remaining 30%. As a result, these two OSU student programmers agreed to split the equity ownership proportionately (i.e. 70/30). Given Startup GH is positioned in the early Feasibility stage and given that the baseline software product has not yet even been started, the three students mutually agreed the Pre-Money Valuation would be $270,000. What is the imputed Post Money Valuation, and what aggregate equity percentage of Startup GH will EACH of the three students (i.e. Entrepreneurial Student, Student Programmer #1, Student Programmer #2) individually own after the App software development has been completed? Post Money Valuation = Student Programmer #1 % Equity = Student Programmer #2 % Equity = Entrepreneurial Student % Equity =
