Question: 1. Below is a simple capitalization table with three founders who each own various common stock shares. An additional 95,000 shares have been set aside

 1. Below is a simple capitalization table with three founders who

1. Below is a simple capitalization table with three founders who each own various common stock shares. An additional 95,000 shares have been set aside in an option pool for future hires. Shareholder Oprah Winfrey Sara Blakely Bill Gates Unissued Options Total Common Shares Options Total Fully Diluted 300,000 300,000 23.35% 700,000 700,000 54.47% 190,000 190,000 14.79% 95,000 95,000 7.39% 1,190,000 95,000 1,285,000 100.00% The company also has two convertible notes with conversion caps (but no conversion discounts): Convertible Debt Holder Shakira Angel Beyonce Angel Conversion Cap Outstanding Balance $ 2,100,000 $ 150,000 $ 1,800,000 $ 200,000 The company now seeks to raise its Seed Round. The founders are seeking $850,000 of additional capital at a pre-money valuation of $5,300,000 and Tom Hanks Capital agrees to those terms. They will also convert the debt from Shakira Angel and Beyonc Angel into the seed round as part of the transaction. Fill in the capitalization table below after the transaction has been completed. Put the correct value next to each Letter below the table. (16 points). Shareholder Oprah Winfrey Sara Blakely Bill Gates Shakira Angel Beyonce Angel Tom Hanks Capital Unissued Options Total Common Shares Seed Preferred Shares Options Total Fully Diluted 300,000 300,000 i. 700,000 700,000 k. 190,000 190,000 1. a. d. b. e. f. o. 95,000 95,000 p. h. 95,000 i. 100.00% m. n. C. 8 1. Below is a simple capitalization table with three founders who each own various common stock shares. An additional 95,000 shares have been set aside in an option pool for future hires. Shareholder Oprah Winfrey Sara Blakely Bill Gates Unissued Options Total Common Shares Options Total Fully Diluted 300,000 300,000 23.35% 700,000 700,000 54.47% 190,000 190,000 14.79% 95,000 95,000 7.39% 1,190,000 95,000 1,285,000 100.00% The company also has two convertible notes with conversion caps (but no conversion discounts): Convertible Debt Holder Shakira Angel Beyonce Angel Conversion Cap Outstanding Balance $ 2,100,000 $ 150,000 $ 1,800,000 $ 200,000 The company now seeks to raise its Seed Round. The founders are seeking $850,000 of additional capital at a pre-money valuation of $5,300,000 and Tom Hanks Capital agrees to those terms. They will also convert the debt from Shakira Angel and Beyonc Angel into the seed round as part of the transaction. Fill in the capitalization table below after the transaction has been completed. Put the correct value next to each Letter below the table. (16 points). Shareholder Oprah Winfrey Sara Blakely Bill Gates Shakira Angel Beyonce Angel Tom Hanks Capital Unissued Options Total Common Shares Seed Preferred Shares Options Total Fully Diluted 300,000 300,000 i. 700,000 700,000 k. 190,000 190,000 1. a. d. b. e. f. o. 95,000 95,000 p. h. 95,000 i. 100.00% m. n. C. 8

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