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Date of Issuance(Pre-Money)
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28/05/2015
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ShareholderInvestment InstrumentSecuritiesPrice Per ShareShares OwnedOwnership PercentageInvestment Amount
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AlexInitial capitalCommon shares$10.01000045.05%$100,000.0
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MariaInitial capitalCommon shares$10.01000045.05%$100,000.0
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ESOP Pool-Common shares (stock options)$10.022009.91%-
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Total22200100.0%$200,000.0
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Date of Issuance(Post-Money / Seed)
David invests $25000
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28/05/2018
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ShareholderInvestment InstrumentSecuritiesPrice Per ShareShares OwnedOwnership PercentageInvestment AmountDilution Percentage
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AlexInitial capitalCommon shares$10.01000043.5%$100,000.01.55%
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MariaInitial capitalCommon shares$10.01000043.5%$100,000.01.55%
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ESOP Pool-Common shares (stock options)$10.022009.6%-0.34%
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David - AngelPriced roundPreference shares$31.57933.4%$25,000.0
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Total22993100.0%$225,000.03.45%
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Note:Pre-money Valuation$700,000.0
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Investment amount$25,000.0
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Post-money Valuation$725,000.0
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Share price$31.5
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To determine how many shares David will receive, we first need to establish the price per share at which he is buying into the company. The price per share is calculated by dividing the pre-money valuation ($700,000) by the total number of shares issued (22,200), which in this case is $31.5.

Next, we use David's investment amount ($25,000) and the price per share ($31.5) to find out how many shares are to be issued to him.This calculation gives us approximately 793 shares.

Dilution percentage is calculated based on the number of new shares issued compared to the total number of shares outstanding before the new issuance. It is expressed as: Dilution percentage = (Number of new shares issued/ Total number of shares outstanding before new issuance)*100

This percentage helps understand the impact of issuing new shares on the ownership and value of existing shares.
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Date of Issuance(Series A)
Raising $200,000 along with a convertible note of $100,000
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28/05/2021
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ShareholderInvestment InstrumentSecuritiesPrice Per ShareShares OwnedOwnership PercentageInvestment AmountDilution Percentage
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AlexInitial capitalCommon shares$10.01000034.3%$100,000.09.17%
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MariaInitial capitalCommon shares$10.01000034.3%$100,000.09.17%
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ESOP Pool-Common shares (stock options)$10.022007.6%-2.02%
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David - AngelPriced roundPreference shares$31.57932.7%$25,0000.73%
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AccelPriced roundPreference shares$52.0384613.2%$200,000
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MatrixConvertible notePreference shares$43.522997.9%$100,000
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Total29138100.0%$525,000.021.09%
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Note:Convertible note calculationMatrixPriced round calculationAccel
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Convertible note floor$725,000Amount raised$200,000
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Convertible note cap$1,200,000Pre-money Valuation$1,200,000
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Discount 20%Post-money Valuation$1,500,000
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Conversion price$1,000,000Share price$52.2
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Convertible note value$100,000
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Share price$43.5
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In this round, we will issue shares to Matrix (convertible note holder) before allocating shares to Accel.

The convertible note specifies terms such as floor (minimum valuation) and cap (maximum valuation).

Accel has set the company's pre-money valuation at $1,200,000, which is also the cap for Matrix's convertible note. With a 20% discount applied to this cap, Matrix's effective investment valuation is determined using inverse calculation. This calculation finds the base amount that, when increased by 20%, results in $1,200,000.

The resulting conversion price ($1,000,000) is used to calculate the share price at which Matrix invests ($43.5). The number of new shares to be issued to Matrix is calculated using their convertible note value ($100,000) and the share price.

We then calculate Accel's ownership in the similar way as David's since it is a straightforward equity round.
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