Term Sheet Exercise: Fill in the gray boxes. Seed Round A founder launches a startup with 1,000,000 shares. % Cap table after seed round Number of shares Founder 1,000,000 Total 1,000,000 100% 100% Series A Round The pre$ valuation of this startup in the Series A round is 1,000,000 The share price = The pre$ valuation Total number of shares before Series A The VC investor invests $ 250,000 The share % of the VC Investment Pre$ valuaion + Investments The share % of the VC Investments Pre$ valuaion + Investment The number of shares VC gets = 1,000,000 % Cap table after Series A Number of shares Founder 1,000,000 VC Total M&A The startup is merged at $ 10,000,000 How much do the founder and the VC receive if there are 1x liquidation preference ai participation? VC $ 1) 1x liquidation preference 2) Participation $ Total for VC $ Founder $ Glossary Cap table Capitalization table Investment The amount of investment in a venture capital funding round Liquidation preference The right of an investor to priority in receiving the proceeds fron a company. With a 1x liquidation preference, the amount of inve returned to an investor before the common stock receives any. Participation After the payment of the liquidation preference, the remaining F distributed ratably to the holders of common stock and the Serie stock. Pre$ valuation Pre-money valuation VC Venture Capital