Question: Answer the next 4 questions using the following Capitalization Table where investors invest $5M for 5M shares Amount Invested by Series A VC $5,000,000 PPS

Answer the next 4 questions using the following Capitalization Table where investors invest $5M for 5M shares

Amount Invested by Series A VC $5,000,000
PPS (price per share) $1.00
Number Shares 5,000,000
Pre Series A Post-Series A
Security # Shares % # Shares %
Common-Founders 7,750,000 77.5% 7,750,000 51.7%
Common-Employee Stock Pool 2,250,000 22.5% 2,250,000 15.0%
Issued 300,000 3.0% 300,000 2.0%
Unissued 1,950,000 19.5% 1,950,000 13.0%
Series A Preferred 0 0.0% 5,000,000 33.3%
Total 10,000,000 100.0% 15,000,000 100.0%

1. What is the fully diluted share count?

11M shares

13M shares

15M shares

17M shares

2. What is the proposed ownership percentage of the investor?

28.5%

31%

33.3%

42%

3. How much is the Original purchase price (OPP) and the Aggregate purchase price (APP) of the investor?

OPP = $1; APP = $5M

OPP = $5; APP = $1M

OPP = $3; APP = $6M

OPP = $6; APP = $3M

4. What is the pre-money and post-money valuation?

Pre-money valuation = $10M: Post-money valuation = $15M

Pre-money valuation = $ 15M: Post-money valuation = $10M

Pre-money valuation = $ 19M: Post-money valuation = $15M

Pre-money valuation = $ 21M: Post-money valuation = $19M

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