1. Consider the following Capitalization (CAP) table for ABC Technology, Inc.:
|
Shareholder
|
Shares Before
|
% Undiluted
|
% Fully Diluted
|
Shares After Investment
|
% Fully Diluted
|
|
Co-founder 1
|
150,000
|
|
35.3
|
|
|
|
Co-founder 2
|
150,000
|
|
35.3
|
|
|
|
Co-founder 3
|
100,000
|
|
23.5
|
|
|
|
Stock Options
|
25,000
|
|
5.9
|
|
|
|
XYZ Ventures, LP
|
0
|
|
0
|
|
|
|
Total
|
425,000
|
|
100
|
|
|
a. If the stock options are authorized but not issued or outstanding, what undiluted percentage of the company does each shareholder own before XYZ Ventures, LP invests?
b. If XYZ Ventures, L.P invests $1,500,000, and pays $20 per share, complete the CAP table on a fully diluted basis.
c. What is the pre-money and post-money valuation?