In 2013, the Company raised $675,000 from Angel Investors. The structure of the investment is Convertible...

Transcribed Image Text:

In 2013, the Company raised $675,000 from Angel Investors. The structure of the investment is Convertible Preferred Shares (with a 1x Liquidation Preference) at Pre-Money Valuation of $2.3MM. Additionally, the preferred shares come with a 9% Cumulative Dividend. In 2014 (2 Years following Launch), Cowboy Ventures agreed to invest $5MM in Good Eggs at a Pre-Money Valuation of $13MM. Cowboy agrees to convertible preferred shares, under the following conditions: 1) Cowboy receives a 4x Return Preference (in the event they choose to redeem) with 12% Cumulative Dividends. Cowboy also demanded that the company create an Advisor Warrant Pool equivalent to 3% of total shares and an Employee Stock Option pool equivalent to 10% of the total shares. Cowboy was not diluted by these pools. Three years following launch, end of 2014, Beth leaves the company. On January 1, 2015, the company hired Reagan as COO. He received 550,000 stock option with a two-year vesting period. Also on January 1, 2015, the Company recruited Bob and Rebecca to the board. Each received warrants to acquire 100,000 shares. In 2013, the Company raised $675,000 from Angel Investors. The structure of the investment is Convertible Preferred Shares (with a 1x Liquidation Preference) at Pre-Money Valuation of $2.3MM. Additionally, the preferred shares come with a 9% Cumulative Dividend. In 2014 (2 Years following Launch), Cowboy Ventures agreed to invest $5MM in Good Eggs at a Pre-Money Valuation of $13MM. Cowboy agrees to convertible preferred shares, under the following conditions: 1) Cowboy receives a 4x Return Preference (in the event they choose to redeem) with 12% Cumulative Dividends. Cowboy also demanded that the company create an Advisor Warrant Pool equivalent to 3% of total shares and an Employee Stock Option pool equivalent to 10% of the total shares. Cowboy was not diluted by these pools. Three years following launch, end of 2014, Beth leaves the company. On January 1, 2015, the company hired Reagan as COO. He received 550,000 stock option with a two-year vesting period. Also on January 1, 2015, the Company recruited Bob and Rebecca to the board. Each received warrants to acquire 100,000 shares.