The information for XZY Inc. in Exhibit 1 is for the base case.

 

 Exhibit 2 specifies that the financing will be done in two rounds where round one is for $1M and the second round of financing (to happen at end of year 2) is for $3M. The discount rate is 50% for years 1 and 2 but drops to 40% thereafter. "X" means some calculation or a number needs to be filled in that cell. The absence of "X" means no calculation/number is expected. Submit the above exhibits the way they are presented here showing all the calculations in the appropriate column(s) along with a cover page to indicate the names of those in the group and what each individual contributed to the assignment.

Transcribed Image Text:

VC Method Exit value Time to exit Discount rate Investment amount Number of existing shares Post-Money Pre-Money Ownership % of VC. Ownership % of founders Number of new shares. Price per share Final wealth of VC Final wealth of founders PV of VC's wealth PV of founders' wealth CALCULATIONS X XX X X X X X X Deal Information $40,000,000 60.00% $4,000,000 1,000,000 X X X X ×××× X X X X 4 X VC Method Exit value Time to exit Discount rate Investment amount Number of existing shares Post-Money Pre-Money Ownership % of VC. Ownership % of founders Number of new shares. Price per share Final wealth of VC Final wealth of founders PV of VC's wealth PV of founders' wealth CALCULATIONS X XX X X X X X X Deal Information $40,000,000 60.00% $4,000,000 1,000,000 X X X X ×××× X X X X 4 X

Answer rating: 100% (QA)

Here is the breakdown of contributions Group Members John Doe Led calculations for Round 1 financing ... View the full answer