Question
You've just started an amazing business that solves the campus parking problem and as founder have issued yourself 10M shares of Founders Stock at $0.001/share.
You've just started an amazing business that solves the campus parking problem and as founder have issued yourself 10M shares of Founders Stock at $0.001/share. Students park in a lot you've built near Cuesta College, and are shuttled to the roof of the library via a 25 passenger helicopter you've leased. You've managed to convince your wealthy Aunt Sandberg (who has always had a little too much faith in your potential) to invest $150,000 on SAFE.
Terms of the SAFE give Aunt Sandberg a 20% discount with a minimum qualified financing of $1.5M, and a $3M CAP.
After successfully operating your business for 1 year and generating $350,000 in revenue, you start looking to expand to other campuses and get an offer from a college business focused VC named FOOL VC (there are a ton of these) that agrees to provide you with $2M in equity financing in exchange for 30% of your company.
The VC will not bend on either condition. The round will be for $2M and they want 30% ownership after the round closes.
1) What is the percentage ownership that your Aunt Sandberg has after the VC investment closes?
2)What is the value (on paper) of your (the founder's) ownership stake in the company after the VC investment?
3)What is the value (on paper) of your Aunt Sandberg's investment after the VC round closes?
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