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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