Walnut Venture Associates (D): RBS Deal Terms Case Solution & Analysis

1. assume that in five years RBS is liquidated for 3 million dollars. If the deal proposed in the term sheet is accepted , how much will this round investors get from the 3 million dollars, representing what percentage of the company? what if RBS is liquidated for 10 million dollars?
2. What is a reasonable valuation for RBS in June 1998? What is the value implied by the term sheet?
3. What proposed terms do you find most puzzling and why? What would you try to negotiate, and what you might want to give up to get what you want