Step 1 Calculate the value of the SP Angels convertible debt at closing of Series A:= (Investment + Interest for year)/(1 Series A discount)Value of South Philly Angels InvestmentNotes convertible (investment)Interest (1/2 year)$Discount (at closing of Series A)300,00010%20%Duration (half year)Value (after conversion)0.5$393,750Step 2 Fill in the post-money Series A shares:New Series A investors + SP 'Angels' newly converted sharesSouth Philly Angels (newly converted)Truecost Venture$$393,7504,000,000Post-money series A shares$4,393,750Step 3 Calculate Total Post-Money ValuePre-Money Value + Series A Investment (including newly converted SP Angels stake)Pre-money valueSeries A investment$$5,000,0004,393,750Total Post-Money value$9,393,750$9,393,7501Step 4 Calculate total post-money shares:Post-money value / $1.00 share pricePost money value$1 share priceShares9,393,750Step 5 Calculate Employee Pool shares and dollar valueEmployee Pool % x Total sharesEmployee poolTotal sharesSharesDollar valueStep 6 Calculate ownership % and shares remaining for Founder25%9,393,750$2,348,4382,348,438InvestmentValueTruecost Venture PartnersSouth Philly AngelsEmployeesFounder$$$$Total sharesPrice per share4,000,000393,7502,348,4382,651,563$$$$11119,393,750Step 1 Calculate the value to Series A of exercising the Liquidation PreferenceTruC ...
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