Question: VALUATION -- CAP TABLE 3. At inception, founders owned 4 million shares at $0.20 a share. Two years later, they raised first round of financing

VALUATION -- CAP TABLE

3. At inception, founders owned 4 million shares at $0.20 a share. Two years later, they raised first round of financing in the amount of $1.5M for a total of 1 million shares. In an unanticipated second round of funding, the second VC invests $3.3M for 25% of the ownership.

What is the pre-money and post-money valuation after the first round?

What is the dilution of founders in the first round? In the second round?

Find the implied share price for each round? Is the second round, an up round or a down round?

What is the wealth of the first VCs ownership after second round?

Fill in the values in Cap Table below based on calculations that are shown in detail regarding # shares, equity value, % ownership and price per share.

	Price PER SHARE			Price per share			Price per share
	# Shrs	Equity	%Own	# Shrs	Equity	%Own	# Shrs	Equity	%Own
Founders
1^st VC
2^nd VC
Total

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