You are a Founder and currentCEO of Itelanet, Inc. an IT start-up that has been in business for 4 years.
(We are at the end of Year 4)
Itelanet expects to have its initial product on the market at the end of year 6 and be acquired at the end of Year 8.
Itelanet has just closed its B Round raising	$25.0	million from Snowscape Ventures
Pre-Money Valuation	$83.0	million
With the B Round in place, Itelanet's cash	$25.5	million
balance (End of Year 4) is
Prior investments:
Founders (Year 0)	$4.0	million
A Round Investors (End of Year 2)	$10.0	million
Percent Ownership at time of financing	37.0%
Part A
(i) Calculate the capitalization table (% and $s) for Founders, A, and B Rounds
Include the valuation step up (%/yr) for each round in the cap table
(ii) As a founder, how would you feel about the progress of the company to the B Round? Why?
Part B
Following closing the B Round, Itelanet's expected cash flows to Exit are as shown below.
	5	6	7	8
Operating Cash Flow	($10.0)	($12.0)	($20.0)	($25.0)
Calculate a financing plan for Itelanet Year 5 to Exit (use only one additional financing C Round to get to Exit)
Part C
Note: The inputs here may be different from your answers to Parts B above.
Differences here do NOT mean your answers above are incorrect.
A VC is considering providing the C Round for Itelanet
(i) After negotiation with Itelanet, this firm agrees to invest	$47.0	million
and receive	12.5%	ownership
(ii) Calculate the Cap table (% ownership only) for the C Round
(iii) What is the valuation step up (%/year) from the B to the C Round?
(iv) What most liekly accounted for valuation step up from B to C Rounds?
(iii) What would be the return for each investment round (Founders, A, B, and C)
when Exit occurs as expected at the end of Year 8
with an actual exit valuation of	$475
(iv) As a Founder why or why not would you be pleased with your return?