ABC COMPANY'S CAPITALIZATION TABLE
Shareholder Group FOUNDERS Founders Advisory Board
Initial Ownership Shares or Percent Options Owned 1,000,000 1,000,000 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%
Round #1 - 6/2000 Shares or Percent Options Owned 1,000,000 1,000,000 470,522 68.00% 0.00% 0.00% 0.00% 0.00% 0.00% 68.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 32.00% 0.00% 0.00% 0.00% 0.00% 100.00% Round #1 $2,125 1,000 $3,125 32.00% $ 2.13 $ 0.21 10%
Shares or Options
Round #2 - 10/2000 Percent Owned 68.00% $ 0.00% 0.00% 0.00% 0.00% 0.00% 68.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 32.00% 0.00% 0.00% 0.00% 0.00% 100.00% $ Round #2 $3,624 $3,624 0.00% $ 2.46 $ 0.49 20%
Value 2,465 2,465 1,160 3,624
Shares or Options 1,000,000 1,000,000 470,522 -
Round #3 - 6/2001 Percent Owned 68.00% $ 0.00% 0.00% 0.00% 0.00% 0.00% 68.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 32.00% 0.00% 0.00% 0.00% 0.00% 100.00% $ Round #3 $60,500 $60,500 0.00% $ 41.14 $ 41.14 100%
Value 41,142 41,142 19,358 60,500
Shares or Options 1,000,000 1,000,000 470,522 1,470,522
Round #4 Percent Owned 68.00% $ 0.00% 0.00% 0.00% 0.00% 0.00% 68.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 32.00% 0.00% 0.00% 0.00% 0.00% 100.00% $ Round #4 $60,500 $60,500 0.00% $ 41.14 $ 41.14 100%
Value 41,142 41,142 19,358 60,500
Shares or Options 1,000,000 1,000,000 470,522 1,470,522
IPO Percent Owned 68.00% $ 0.00% 0.00% 0.00% 0.00% 0.00% 68.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 32.00% 0.00% 0.00% 0.00% 0.00% 100.00% $ Round #5 $60,500 $60,500 0.00% $ 41.14 $ 41.14 100%
Value 41,142 41,142 19,358 60,500
Founders & Initial Investors OPTION POOL Reserved employee option pool
1,000,000 1,000,000 470,522 -
Reserved employee option pool Round #1 financing Round #2 financing Round #3 financing Round #4 financing IPO
-
1,000,000 ASSUMPTIONS Variable: Prefinance value Variable: Dollars invested Total value after investment (000's) Calculated % of Company purchased Price per share Common at 20% of preferred
1,470,522
1,470,522
1,470,522
$
$1,823 10 $1,833 0.55% 1.83
VALUATION Industry multiple (average) Discount to private company ABC Company multiple Revenues in Yr 3 Gross valuation as of Yr 3 Debt as of Yr 3 Cash as of Yr 3 Net valuation as of Yr 3 Discount rate used Term (in months)
$
$
3.00 0% 3.00 20,000,000 60,000,000 500,000 60,500,000 30% 120
8/12/2008