Unformatted text preview: their shares, you might include or exclude the expense of getting out of the employment agreement, etc. Once you’ve updated the cap table and cleaned it up, you should use the information above to: Determine how you would structure your $5 million investment Include the type of shares you purchase and terms of the stock Value the business and calculate the pre- and post-money Add an option pool Show two complete cap tables: one for before the $5mm round that includes your corrections and a second that shows the cap table, post the investment and option pool As you do this, think about: The structure of your investment in the business What your pre-money valuation is and why What step-up or step-down this is for the existing shareholders How this changes the ownership and voting structure...
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- Fall '11
- 5mm, $5,000,000, $5 million, 10 percent, Cap table