Solution-What is the post-money valuation of startup

What is the post-money valuation of startup

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Reference no: EM133206325

Assume that you are one of the co-founders of Startup, Inc. ("Startup"). In the past, Startup issued shares to its two founders, adopted a stock option plan (a/k/a "option pool"), issued some of the options under the stock option plan, and issued Series Seed stock to an angel investor. Below is the cap table for Startup immediately before seeking its "Series A" round of venture capital.

	PRE Series A
	Shares	%
Founders' Shares	4,000,000	57.1
Stock Option Plan Issued	1,000,000	14.3
Stock Option Plan Unallocated	1,000,000	14.3
Angel (Series Seed)	1,000,000	14.3
Total	7,000,000	100.0

For Questions 1-2, assume that a Series A VC investor offers to invest $3,000,000 into Startup for 3,000,000 shares of Series A preferred stock.

Question 1-A

What is the POST-money valuation of Startup?

Question 1-B

What is the PRE-money valuation of Startup?

Question 2

Complete each of the blank cells in the cap table below.

	PRE Series A		POST Series A
	Shares	%	Shares	%
Founders' Shares	4,000,000	57.1	4,000,000
Stock Option Plan Issued	1,000,000	14.3	1,000,000
Stock Option Plan Unallocated	1,000,000	14.3	1,000,000
Angel (Series Seed)	1,000,000	14.3	1,000,000
Series A VC	N/A	N/A	3,000,000
Total	7,000,000	100.0	10,000,000	100.0

Reference no: EM133206325

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What is the post-money valuation of startup

Reference no: EM133206325

Reference no: EM133206325

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