Question: Below is a simple capitalization table with three founders who each own various common stock shares. An additional 110,000 shares have been set aside in

Below is a simple capitalization table with three founders who each own various common stock shares. An additional 110,000 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 450,000 450,000 32.85% 600,000 600,000 43.80% 210,000 210,000 15.33% 110,000 110,000 8.03% 1,260,000 110,000 1,370,000 100.00% The company also has two convertible notes with conversion caps (but no conversion discounts): Convertible Debt Holder Conversion Gap Outstanding Balance Shakira Angel $1,500,000 100,000 Beyonce Angel $ 2,000,000 250,000 The company now seeks to raise its Seed Round. The founders are seeking $800,000 of additional capital at a pre-money valuation of $5,000,000 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 450,000 450.000 600,000 600,000 210,000 210,000 a d. m b le n. C a. 110000 110,000 h 110,000 100.00% Total The company now seeks to raise its Seed Round. The founders are seeking S800,000 of additional capital at a pre money valuation of $5,000,000 and Tom Hanks Capital agrees to those term. They will also convert the da Shakira Angel and Beyonc Angel into the seed round as part of the transaction Fill in the capitalaston table below after the transaction has been completed. Put the correct value next to each letter below the table. (16 points). Shareholder Common shares Seed Preferred Share Options Tung Oprah Winfrey 450 DOO 450.000 Sara Blakely 600,000 600,000 210,000 210.000 Shakira Angel Beyonce Angel Tom Harles Capital Unised Options Bill Gates R 110,00 110,000 110,000 Total 100 DON 1 1 1 Below is a simple capitalization table with three founders who each own various common stock shares. An additional 110,000 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 450,000 450,000 32.85% 600,000 600,000 43.80% 210,000 210,000 15.33% 110,000 110,000 8.03% 1,260,000 110,000 1,370,000 100.00% The company also has two convertible notes with conversion caps (but no conversion discounts): Convertible Debt Holder Conversion Gap Outstanding Balance Shakira Angel $1,500,000 100,000 Beyonce Angel $ 2,000,000 250,000 The company now seeks to raise its Seed Round. The founders are seeking $800,000 of additional capital at a pre-money valuation of $5,000,000 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 450,000 450.000 600,000 600,000 210,000 210,000 a d. m b le n. C a. 110000 110,000 h 110,000 100.00% Total The company now seeks to raise its Seed Round. The founders are seeking S800,000 of additional capital at a pre money valuation of $5,000,000 and Tom Hanks Capital agrees to those term. They will also convert the da Shakira Angel and Beyonc Angel into the seed round as part of the transaction Fill in the capitalaston table below after the transaction has been completed. Put the correct value next to each letter below the table. (16 points). Shareholder Common shares Seed Preferred Share Options Tung Oprah Winfrey 450 DOO 450.000 Sara Blakely 600,000 600,000 210,000 210.000 Shakira Angel Beyonce Angel Tom Harles Capital Unised Options Bill Gates R 110,00 110,000 110,000 Total 100 DON 1 1 1
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