An Angel Investor makes a Seed Round investment of $750,000 in an entrepreneur's venture using a Simple Agreement for Future Equity (SAFE), as shown below. What does the capitalization table look like for {Founders & Management, Angel Investor, Series A Investor} subsequent to the Series A round of financing under the following two

Scenarios:

1. The entrepreneur raises $4,000,000 from an investor in a Series A round in return for 40% of company's equity. Assume no option pool prior to or concurrent with Series A financing.

2. The entrepreneur raises $4,000,000 from an investor in a Series A round in return for 20% of the company's equity. Assume no option pool prior to or concurrent with Series A financing.

Answer rating: 100% (QA)

Capitalization Table A Particulars Total Value Per Share Number of shares of to... View the full answer