Two entrepreneurs launch their startup with 20,000 euros each, and they constitute their company with 1€/sh share nomina
Posted: Tue Nov 16, 2021 7:55 am
Two entrepreneurs launch their startup with 20,000 euros each,
and they constitute their company with 1€/sh share nominal value.
Over time, they complete the following rounds of investment:
6 months after the foundation, they get 50,000€ from an
accelerator program for 9% of the company.
1 year later they raise 400,000€ from a business angels
syndicate for 25% of the company.
Answer the following questions, showing your
work:
1.What was the implied valuation of the company for the
accelerator?
2.How many shares did the accelerator receive when they first
invested?
3.How many shares did the accelerator receive when the syndicate
came in?
4.What price did the accelerator pay for their shares?
5.What is the pre-money valuation of the company at the
syndicate’s round?
6.What premium per share did the syndicate pay?
7.How many shares are owned by the founders at the end of the
process?
8.How much is the value of the total common stock at the end of
the process?
9.By how much did the accelerator multiply the value of their
shares when the syndicate came in?
10. If a 10% of the equity has to be reserved as an option pool
when the accelerator comes in, by how much will the accelerator be
diluted on that round?
and they constitute their company with 1€/sh share nominal value.
Over time, they complete the following rounds of investment:
6 months after the foundation, they get 50,000€ from an
accelerator program for 9% of the company.
1 year later they raise 400,000€ from a business angels
syndicate for 25% of the company.
Answer the following questions, showing your
work:
1.What was the implied valuation of the company for the
accelerator?
2.How many shares did the accelerator receive when they first
invested?
3.How many shares did the accelerator receive when the syndicate
came in?
4.What price did the accelerator pay for their shares?
5.What is the pre-money valuation of the company at the
syndicate’s round?
6.What premium per share did the syndicate pay?
7.How many shares are owned by the founders at the end of the
process?
8.How much is the value of the total common stock at the end of
the process?
9.By how much did the accelerator multiply the value of their
shares when the syndicate came in?
10. If a 10% of the equity has to be reserved as an option pool
when the accelerator comes in, by how much will the accelerator be
diluted on that round?