Question
These are the cap tables for DELTA, Inc. AFTER two different financing rounds (Series A & Series B). Before invest. Series A Series B Shares
These are the cap tables for DELTA, Inc. AFTER two different financing rounds (Series A & Series B).
Before invest. | Series A | Series B | |||||
| Shares held - total after round | Percent | Value of all shared held | Shares held - total after round | Percent | Value of all shares held | |
Founder | 90% | 5,400,000 | 67.5% | $5,400,000 | 5,400,000 | 48% | $10,800,000 |
Investor A |
| 2,000,000 | 25.0% | $2,000,000 | 2,250,000 | 20% | $4,500,000 |
Investor B |
| -- | -- | -- | 3,000,000 | 26.7% | $6,000,000 |
Options | 10% | 600,000 | 7.5% | $600,000 | 600,000 | 5.3% | $1,200,000 |
Total | 100% | 8,000,000 | 100% | $8,000,000 | 11,250,000 | 100.0% | $22,500,000 |
Assume the following:
The company sells for $100,000,000
Series A has a 2X Participating Preference
Series B has a 1X Participating Preference
The Founders are fully vested in their shares and own them outright
Using the cap table above for Delta. Inc., calculate the amount of money that the Founder would have as her take-away.
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