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Startup Equity Structure and Valuation

The document outlines the founding stage and financing rounds of a company, including the issuance of common shares to founders and option pools, as well as preferred shares issued at various valuation levels to investors in seed, Series A, Series B, and Series C rounds. It also details the equity percentages and valuations resulting from each round. The document concludes with details of an M&A exit.

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321 views6 pages

Startup Equity Structure and Valuation

The document outlines the founding stage and financing rounds of a company, including the issuance of common shares to founders and option pools, as well as preferred shares issued at various valuation levels to investors in seed, Series A, Series B, and Series C rounds. It also details the equity percentages and valuations resulting from each round. The document concludes with details of an M&A exit.

Uploaded by

sonkarmanish
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
  • Founding Structure: Details the initial equity distribution among founders and the creation of an option pool.
  • Convertible Note Financing: Describes the convertible note financing stage, outlining invested amounts, discounts, and cap amounts.
  • Series A Financing: Covers the Series A funding round including investment amounts and resulting equity distribution.
  • Series B Financing: Explains the details of the Series B financing stage with new equity and investor contributions.
  • Series C Financing: Presents the Series C funding details with investment data and equity impact.
  • M&A Exit: Summarizes the terms and financials of an M&A exit including valuation and net consideration.

Founding Stage

Issued Equity
Common Shares
Founder 1 35,000
Founder 2 15,000
Founder 3
Founder 4
Founder 5
Total Common 50,000

Option Pool
Granted & Issued Options 250
Increase in Pool 250
Available for Issuance -
Total Pool 250

Preferred Shares
Investor Seed 1
Investor Seed 2
Investor Series A 1
Investor Series A 2
Investor Series B 1
Investor Series B 2
Investor Series C 1
Investor Series C 2
Total Preferred
Total Outstanding Capitalization 50,250
Post-Money Valuation $502,500

Legend: Price Per share


Inputs
ounding Stage Convertible Note Financing
% $ Invested Total Equity %

69.7% $50,000.00 3,544,035 50.0%


29.9% $50,000.00 3,544,035 50.0%

99.5% $100,000.00 7,088,070 100.0%

0.5% na 250 0.0%


0.5% na - 0.0%
0.0% na - 0.0%
0.5% 250 0.0%

$100,000,000 0.00%
$300,000,000 0.00%

0.0% $400,000,000 0.00%


0.0%
100.0% 7,088,320 100.0%
$70,883,200

$10.0000 Note Amount $400,000,000


Discount % 25%
Cap Amount none
Series A Financing
$ Invested New Equity Total Equity %

$2,000,000.00 4,242 3,548,277 7.40%


$5,000,000.00 4,242 3,548,277 7.40%

$7,000,000.00 8,483 7,096,553 14.80%

2,850,000 5.95%
5,000,000 5,000,000 10.43%
2,150,250 4.49%
5,000,000 5,000,250 10.43%

conversion 8,483,032 8,483,032 17.70%


conversion 25,449,095 25,449,095 53.09%
$15,000,000 954,341 954,341 1.99%
$15,000,000 954,341 954,341 1.99%

$30,000,000 35,840,808 35,840,808 74.77%


0.0%
40,849,291 47,937,611 100.0%
$753,466,667

Series A Total $5,000,000


Pre-Money Valuation $190,000,000
Post-Money Valuation $753,466,667
Price Per Share $15.72
Series B Financing
$ Invested New Equity Total Equity %

$0.00 - 3,548,277 6.46%


$0.00 - 3,548,277 6.46%

$0.00 - 7,096,553 12.92%

2,850,000 5.19%
- - 0.00%
2,150,250 3.91%
- 5,000,250 9.10%

8,483,032 15.44%
25,449,095 46.3%
$50,000,000 3,181,137 4,135,478 7.5%
$50,000,000 3,181,137 4,135,478 7.5%
$5,000,000 318,114 318,114 0.6%
$5,000,000 318,114 318,114 0.6%

$110,000,000 6,998,501 42,839,309 78.0%


0.0%
6,998,501 54,936,113 100.0%
$863,466,667

Series B Total $15,000,000


Pre-Money Valuation $753,466,667
Post-Money Valuation $863,466,667
Price Per Share $15.72
Series C Financing
$ Invested New Equity Total Equity %

$0.00 - 3,548,277 6.37%


$0.00 - 3,548,277 6.37%

$0.00 - 7,096,553 12.73%

2,850,000 5.11%
- - 0.00%
2,150,250 3.86%
- 5,000,250 8.97%

8,483,032 15.22%
25,449,095 45.66%
4,135,478 7.42%
4,135,478 7.42%
$7,500,000 238,585 556,699 1.00%
$7,500,000 238,585 556,699 1.00%
$5,000,000 159,057 159,057 0.29%
$5,000,000 159,057 159,057 0.29%
$25,000,000.00 795,284 43,634,594 78.29%
0.0%
795,284 55,731,397 100.0%
$1,751,933,333

Series C Total $25,000,000


Pre-Money Valuation $1,726,933,333
Post-Money Valuation $1,751,933,333
Price Per Share $31.44
M&A Exit
$ Amount %

$298,001,168 6.62%
$298,001,168 6.62%

$596,002,337 13.24%

$239,356,579 5.32%
$0 0.00%
$0 0.00%
$239,356,579 5.32%

$712,445,411 15.83%
$2,137,336,234 47.50%
$347,317,138 7.72%
$347,317,138 7.72%
$46,754,230 1.04%
$46,754,230 1.04%
$13,358,351 0.30%
$13,358,351 0.30%
$3,664,641,084 81.44%
0.0%
$4,500,000,000 100.0%

Exit Valuation $5,000,000,000


M&A Expenses 10%
Net Consideration $ 4,500,000,000
Price Per Share $83.98

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