What does the capitalization table look like

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An Angel Investor makes a Seed Round investment of $750,000 in an entrepreneur's venture using a Simple Agreement for Future Equity (SAFE), as shown below. What does the capitalization table look like for {Founders & Management, Angel Investor, Series A Investor} subsequent to the Series A round of financing under the following two

Scenarios:

1. The entrepreneur raises $4,000,000 from an investor in a Series A round in return for 40% of company's equity. Assume no option pool prior to or concurrent with Series A financing.

2. The entrepreneur raises $4,000,000 from an investor in a Series A round in return for 20% of company's equity. Assume no option pool prior to or concurrent with Series A financing.

Notes: "Valuation Cap" is $5,000,000. There is a 25% "Discount" to the Series A price.

Reference no: EM133073305

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