A) Cloverleaf Company launched their C-Corp with 2M shares. 1.5M total for Founder/Common, and an...
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A) Cloverleaf Company launched their C-Corp with 2M shares. 1.5M total for Founder/Common, and an additional 500K for the option pool for future hires. The three founders equally split their shares amongst each other.
How much of the company do the Founders EACH own, and how much of the cap-table is reserved for future hires?
A) 75%, 25% B) 25%, 25% C) 33%, 33% D) 33%, 25%
B) After building their prototype and landing Beta customers, Cloverleaf raises a $2M Series Seed financing at a $7M pre-money valuation from Allos Ventures. What is post-money valuation and what is the $/share that Allos paid for their shares?
C) Cloverleaf continues to make progress, and in 24 months raises a $3M Series A round at a $12M valuation from Benchmark Capital. What is the $price/share that Benchmark pays, and how much of the company do they own after completing the round.
D)
Cloverleaf continues to grow and attains revenues of $11M by year 5. At that point, one of their main competitors makes an offer to acquire Cloverleaf for current market comps. They agree that an 8X $Revenue multiple is fair.
How much does the acquirer pay for Cloverleaf, and how much do the founders EACH make on the sale?
A) 88m, 13.7m, B) 88m, 41.1m, C) 77m, 15.6m D) 88m, 17.6m
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