MAE 461/ORIE 452 Individual Homework #1 Due Wednesday, September 7, 2011 Typed submissions greatly appreciated. 1. In Vermeer Technologies (C), the company obtained financing of $1.8 million (one-quarter of the initial amount) against a pre-money valuation of $32 million. Thus, the post-money valuation was 32 + 1.8 = 33.8 million. Using the table in Exhibit 3 of Vermeer Technologies (A) and adjusting it for the subsequent rounds of funding, and assuming that each stockholder’s stock to be fully vested, find the dollar value of each party’s stock. Hint: The Round Two VC’s get 1.8/(32+1.8) = 5.33% of the company. Hint 2: The parties involved are: Round Two VC’s Round One VC’s Ferguson Forgaard Germano Other employees 2. Well, it turns out that Vermeer was sold to Microsoft for $131,000,000. Assume full vesting for all parties, and find the amount each party received in the sale. Assume that Microsoft paid cash. 3.
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This note was uploaded on 09/05/2011 for the course ORIE 4152 at Cornell University (Engineering School).