Consider a series-A round in which: Pre-money value: $50 million Money to be invested in

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Question:

Consider a series-A round in which:

• Pre-money value: $50 million
• Money to be invested in current round (round size): $30 million
• Employee Stock Pool: 18%

Suppose the employee stock pool is part of the pre-money value and suppose that just prior to the round the company has 25 million shares outstanding.

a) What is the post-money value of the company right after the round closes?

b) Right after the round closes, what percentage of the company's equity will be owned by the new investors?

c) Right after the round closes, what percentage of the company's equity will be owned by the old investors, meaning the investors that owned the company's equity prior to this round?

d) What will be the share price right after this round closes?

e) How many shares outstanding will there be including the shares in the employee stock pool?

f) How many shares will there be in the employee stock pool?

Suppose prior to this round the founders own 70% of the company's equity and angel investors owned the remaining 30%. Further suppose the 70% owned by the founders is common stock and the angel investors own "seed preferred."

g) What is the capitalization table for the company after today's round? Specifically list how many shares are owned by the founder's, angel investors, the series-A investors and the number of shares in the employee stock pool. Also for each list the type of equity (common or preferred) and the percentage of the firm's total equity owned by the corresponding class of investor.