Use the #18Bonus (Cap Table-Multiple Funding) to complete this Assignment. Insert (i.e. type in) the appropriate/required input variable or necessary completed computation into each of the required gray shaded cells in order to fully complete Extra Credit Capitalization Table. The Capitalization Table includes Co-Founder, Stock Option Pool and cash Investor equity ownership, projected capital funding rounds at specified forecasted Pre-Money Valuations, the issuance of new equity shares for both Common and Preferred, and the estimated Investor returns which are subject to the terms of the Preferred Stock. Round all dollar amounts to ones and Equity percentages to tenths.

Capitalization Table/Investor Exit ROI Extra Credit Problem Statement:

Two Co-Founders are incorporating their startup, Company ABC, today. Per the incorporation filing, Company ABC will have 5,000,000 authorized Common Shares and 5,000,000 Preferred Shares. A total of 500,000 Common Shares and 0 Preferred Shares will be issued and outstanding at formation. One Co-Founder, the CEO, will own 75% of the equity or 375,000 Shares and the other Co-Founder, the CTO, will own 25% of the equity or 125,000 Shares.

Based upon the Company ABC Business Plan and Integrated Financial Modeling, the Company anticipates after a month creating a 20% Stock Option Pool set aside for future hires. Almost immediately thereafter, the Company needs to raise $200,000 in total equity capital. The Co-Founders anticipate raising this initial capital from several Fiends @ $75,000 and a single Angel @ $125,000, which one of the Co-Founders has a strong personal relationship with. The plan is to raise this capital via a Common Stock offering at a Pre-Money Valuation of $800,000. The Company will use this first external capital infusion to complete all software development.

In order to launch a regional sales & marketing initiative and complete the necessary business infrastructure, the Company plans to raise a final $2,000,000 Series A Preferred Full Participation equity offering. Per the current financial projections, the Company will be able to successfully achieve financial sustainability with this funding. The Co-Founders optimistically hope to realize a significant increase in the Pre-Money Valuation to $2,000,000 for this Series A Preferred Full Participation funding round. In an attempt to support this targeted increase in the Pre-Money Valuation, the Co-Founders plan to offer an attractive 10% Dividend Rate and a 2.0X Liquidation Preference on the Series A Preferred.

Based upon in-depth market research, the Co-Founders are projecting a $45 million Exit Value exactly five years after the Series A Preferred Funding is completed.

IF SUCCESSFUL, what % of equity will ALL the owners (i.e. each Co-Founder, the Option Pool, the Common investors, & the collective Series A Preferred) have and what is the anticipated Exit Proceeds for each. Complete and submit the #10-Bonus (Cap Table-Multiple Funding) Capitalization Table Template.

Total #Founding Shares Pre-Money: Stock Options Pool #18-Bonus (Cap Table - Multiple Funding) Common Pre-Money Valuation Common Stock Raised Common Post Money Valuation Common Investor(s) % Equity Common Investor per Share Price Total Common Common Total % Equity $ Investment #Shares Total Shares % Equity Series A Pre-Money Valuation Series A Capital Raised Post Money Valuation Series A Investor(s) % Equity s) Series A Investors) per Share Price Series A Series A $ Investment # Shares Total Shares #DIV/0! Total Founder's Stock per Share Basis Initial Shareholders: Shares Founder #1 - CEO Total % Equity Total % Equity Shares Founder 2 - CTO Option Pool Common Stock Investors) Family & Friends Angel Series A lnvestors) Total Total ROI Multiple Potental Exit Value Return Dividend Years Liquidation Total Multiple $ Preference Shareholder Equity Distributions & Returns: Liquiidation Equity Value Common Stock Investors: Family & Friends Angel Series A Preferred Investors: Liquidation Preference Rate To Exit Liquidation Preferences: Series A Investors Series A Accrued Dividend Series A Preferred Liquidation Pref. Distributable Equity Value (balance) Founder #1 - CEO Founder #2 - CTO # Option Pool Total-Check Figure L Total #Founding Shares Pre-Money: Stock Options Pool #18-Bonus (Cap Table - Multiple Funding) Common Pre-Money Valuation Common Stock Raised Common Post Money Valuation Common Investor(s) % Equity Common Investor per Share Price Total Common Common Total % Equity $ Investment #Shares Total Shares % Equity Series A Pre-Money Valuation Series A Capital Raised Post Money Valuation Series A Investor(s) % Equity s) Series A Investors) per Share Price Series A Series A $ Investment # Shares Total Shares #DIV/0! Total Founder's Stock per Share Basis Initial Shareholders: Shares Founder #1 - CEO Total % Equity Total % Equity Shares Founder 2 - CTO Option Pool Common Stock Investors) Family & Friends Angel Series A lnvestors) Total Total ROI Multiple Potental Exit Value Return Dividend Years Liquidation Total Multiple $ Preference Shareholder Equity Distributions & Returns: Liquiidation Equity Value Common Stock Investors: Family & Friends Angel Series A Preferred Investors: Liquidation Preference Rate To Exit Liquidation Preferences: Series A Investors Series A Accrued Dividend Series A Preferred Liquidation Pref. Distributable Equity Value (balance) Founder #1 - CEO Founder #2 - CTO # Option Pool Total-Check Figure L