You are the CEO of Itelanet, Inc. an IT start-up that has been in business for 4 years. (We are at the end of Year 4) Prior investments (Founders and A Round) Founders (Year 0) A Round Investors (End of Year 2) Percent Ownership Itelanet expects to have its initial product on the market at the end of year 6 and be acquired at the end of Year 10. Itelanet has just closed its B Round raising $8.5 million from Snowscape Ventures $19.5 million Post Money Valuation With the B Round in place, Itelanet's cash balance (end of Year 4) is Expected operating cash flows Operating Cash Flow $0.6 $2.5 at end of Year 2 45.0% at A Round $10.0 million 5 ($3.3) Part A (1) 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 7 6 ($5.0) ($7.5) 10 8 9 ($5.5) ($3.0) ($2.0) (II) If you were a founder, how would you feel about the progress of the company to the B Round? Why? Part B (1) Calculate a financing plan for Itelanet Year 5 to Exit (use only one additional financing C Round to get to Exit)