Capitalization Table

You can customize this template by filling in a simple form, without editing a spreadsheet.
This is a small and simplified working sample of the capitalization table template. A customizable template is a flexible model that you can adapt to your situation by filling in a simple form, without editing a spreadsheet or its formulas. For example, you can specify time range and time grain; number and names of items in a dimension (such as your products and product families); and include or exclude major features. The resulting spreadsheet matches your needs better than any standard template. Get a customized version of this template on our website.

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1. Order a customized version of this template. Click "+" for more information. • You can specify custom features by filling out a simple form. (Click on "+" for more information.) Precise customizations vary from template to template. Examples: − Specify the starting time, time range, time grain and rollup time grains (such as annual sums). − Specify the items in a dimension and levels of hierarchy (such as product families and products). − Include or exclude entire sub-models in the template. − These features address the most serious problem with conventional spreadsheet templates: You can customize a template in many ways without having to interpret and edit numerous cell formulas. • You can edit many aspects of your Excel template after receiving it. (Click on "+" for more information.) − Edit input data in clearly marked input cells. − Edit the model start date of a template, so your template is not out of date when the start date changes. − Edit names of dimension items in once place (such as products, departments, expense accounts). • ModelSheet Excel templates are easier to understand. (Click on "+" for more information.) − Each table has an Excel comment that provides a variable name and explains the variable. − Worksheet "Formulas" expresses the entire model with named variables and symbolic formulas. Although the symbolic formulas are not executable in Excel, they are what the model is made from in ModelSheet. − You never need to read inscrutable cell formulas to understand a ModelSheet customized template. Explore our customized templates. 2. If you want more customizations, retain ModelSheet Software to build them for you. Click "+" for more information. • Our staff has extensive experience in many areas of business and engineering analysis. • ModelSheet technology enables us to offer you more value for your consulting dollar. Learn more about consulting services. 3. Use the ModelSheet Authoring Environment to build and customize your spreadsheet models. The ModelSheet Authoring Environment is a SaaS application for developing and maintaining business models and delivering them in conventional spreadsheets. Click "+" to learn more about ModelSheet technology that makes customized template possible.

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Capitalization Table
This Excel workbook was generated using ModelSheet, a revolutionary new spreadsheet technology. ModelSheet allows you to develop business models using readable formulas, while avoiding the details of cell addresses and hard-to-change sheet layouts. The end result is a conventional Excel workbook just like this one. We built ModelSheet because we believe that spreadsheets are a great way of communicating results but we think it's just too hard to use them to develop reliable, maintainable, expressive and collaborative models.

You'll get a glimpse of ModelSheet's advantages when you take a look at the "Formulas" tab and realize how few separate, readable formulas are needed to produce all of the other worksheets. In addition to formulas, ModelSheet knows about the "dimensions" in your model (e.g., products, locations, departments) as well as the time series that you're using (e.g., 5 years in quarters.) ModelSheet raises the level of thinking and acting from individual cells to natural modeling concepts. It enhances model reliabilty, auditability and maintainability; it enables you to build models that better reflect your intentions; it allows easier collaboration between modelers, developers, and report users; and it improves productivity, especially when making changes to a model.

The ModelSheet authoring environment raises the level of thinking and acting from individual cells to natural modeling concepts like variables, dimensions, time series and accounting types. It enhances model reliabilty, auditability and maintainability; it enables you to build models that better reflect your intentions; it allows easier collaboration between modelers, developers, and report users; and it improves productivity, especially when making changes to a model. We have more to tell you about ModelSheet and we'd like to hear about your needs for templates and models. Please visit our website at www.modelsheetsoft.com or contact us at info@modelsheetsoft.com.

Description of the Capitalization Table Model
Capitalization tables track investments, common and preferred shares, options, notes, preference rights through multiple rounds of financing of a company. The complexity of this application makes it an ideal application for ModelSheet. The Standard version does not contain all featurse listed below. See the comparison table on our website for more information. Types of Securities The model includes five types of securities. • Convertible notes earn non-cash payments (termed dividends). See Technical Notes below for default conversion rules. • Preferred shares earn a dividend and can convert to common stock. ModelSheet is a trademark of ModelSheet Software, LLC page 2 of 79

Capitalization Table
• Common stock • Warrants have an exercise price, a selling price, and exercise conditions. See Technical Notes below for default exercise rules. • Options have an exercise price, a selling price, and exercise conditions. ModelSheet can easily change the number of series for each types of security. (Such changes would present a major challenge if authoring were performed using conventional spreadsheets). Major Computed Results The model computes: • the value and share units of each type of security owned before and after each transaction round. • the number of share units of each type purchased at each transaction round. • the number of fully diluted common share units before and after each conversion event. • the valuation of each type of security before and after each transaction round, and the value of the enterprise before and after each transaction round. • the payout at liquidation to each type of security, accounting for liquidation preferences of senior securities. Investment Rounds The model includes a number of investment rounds that you can set, including 'Exit'. You can specify the number of rounds in your customized template. Phases within Each Investment Round Each investment round has five phases that occur in this order, and include these transactions. 1. "Start Phase": Stock splits occur and dividends in kind are paid at the start of each investment round. 2. "New Sales Phase": Sell new securities (convertible notes, preferred stock, warrants, options, common stock) 3. "Post Sales Phase": Record investments and share units after sale of new securities. 4. "Conversion Phase": Stakeholders can convert notes and preferred shares and can exercise warrants and options to obtain common stock. 5. "End Phase": Record security holdings, prices and values at the end of the investment round. All five phases are assumed to occur on the date of the investment round.

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" You can set numerous parameters that influence these default conversion and exercise decisions. Similarly. Investment and Return on Investment The model reports three measures of return on investment for each series of each type of security. Five criteria just be satisfied in order for the default conversion and exercise decision to be positive.Capitalization Table You can edit this phase structure of a round in customized templates. The date of the current round >= a specified trigger date 2. 5. • Internal rate of return for the cash flow from each type of security The key results are collected on worksheets 'Investment'. 3. common share price . Conversion and Exercise Decisions The model includes default decisions for conversion of notes and preferred shares and exercise of warrants and options. This is a fairly complex process. and dividend rate. For notes and preferred: value of common shares obtained > (1+premium) * liquidation preference. You can also override these default decision rules entirely by entering how much of each type of security is converted or exercised in each investment round. 4. The sum of investments in common. For warrants and options: common share price >= exercise price. The total value of all common shares equals the value of the firm less liquidiation preferences of unconverted notes and preferred shares less valuation of unexercised warrants and options. The discount rates can differ across series and types of securities to reflect different risk profiles. preferred and notes > a specified trigger investment threshhold 3. the sum of th values of all series of a given type of security equals the value of that type of security. In any phase of an investment round. You can edit the phase structure using ModelSheet Authoring. All unconverted notes and preferred shares are valued at their liquidation preferences.exercise price). LLC page 4 of 79 . but it is much easier to do with ModelSheet Authoring than with conventional spreadsheets. 'Shares'. and 'Payout'. Technical Notes Valuation and Security Prices The following principles determine valuation and securities prices 1. This valuation ignores impact on option price of stock volatility. 'Valuation'. • Return multiples: the multiple of investment that is paid out • Present value of the cash flow for each series of each type of security. the sum of the values of all five types of securities equals the value of the firm. 4. The value of the firm at the start of each investment round is an exogenous input that reflects the expected future cash flows of the firm. 5. 2. The price of a common share equals the value of all common shares / number of common shares. All unexercised warrants and options are valued at max(0. 1. Inputs to the Model ModelSheet is a trademark of ModelSheet Software. For notes and preferred: investment in notes + preferred < a stated fraction of firm value. riskless returns.

and conversion prices for preferred stock. • The amount invested in new common shares. and convertible notes in each round. − The number of shares for convertible notes is not determined until conversion. LLC page 5 of 79 . • The exercise price and purchase price of each type of option at each transaction event. LLC. warrants and options. LLC ModelSheet and the ModelSheet logo are registered trademarks of ModelSheet Software.' • The number of investment rounds and their names and dates. preferred shares. conversion timing.Capitalization Table You can edit inputs in cells shaded darker blue on the worksheets 'Inputs' and 'Scenario Inputs. 2010. ModelSheet is a trademark of ModelSheet Software. 2010 ModelSheet Software. This Excel workbook was generated by ModelSheet on February 19. • The number of new warrants and options purchased in each investment round. You can also override the model's assumption for conversion and exercise of securities by entering new conversion percentages in the dark blue cells in variable 'Converting %' on worksheet 'Conversion'. Copyright © 2009. except for this worksheet of comments. • The valuation of the enterprise at the start of each investment round. − Parameters that determine unit purchase prices.

Company Name ABC Corp. Investment Scenario 1. Excel formulas in shaded cells are starting suggestions. Event Data Seed Event Date 8/1/2010 Round A 7/1/2011 Exit 6/1/2012 Firm Value Convertible Notes Seed New Investment Series B Series A Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Round A Exit Total Note Conversion Discount % Series B Series A Dividend % (Yr) Series B 4.0% 30% 30% Liq Multiple Series B Series A 1. You can overwrite them. Valuation Scenario 1 Input Data Shaded cells are input cells.Capitalization Table ABC Corp.000 1.000 . You can enter data in them.

20 0.000.0% Conversion Trigger Value % 4/1/2011 4/1/2011 Series B Series A Conversion Liq Premium % $1.000 Series B Series A 0.0% 50.0% $0 $0 $0 $0 10.Series A Conversion Criteria Conversion Trigger Date Series B Series A Convert Trigger Invest Series B Series A Rates of Return Discount Rate (Yr) Series B Series A Subtotal 4.0% Stock Preferred Shares Seed Price Premium % Series A New Investment Series A Subtotal Liq Multiple Series A Conversion Criteria 1.0% 10.000 $1.000 $0 $0 $0 $0 Dividend % (Yr) Series A 6.0% 50.20 50% 50% IRR Initial Guess (Yr) 30% 30% Series B Series A Subtotal 50.0% Round A Exit Total .000.0% 10.

20 $72.0 0.0 0.40 $26.00 Conversion Trigger Date Series B 4/1/2011 0.20 $33.00 $1.0 0.0 $1.0 0.0 0.500.0 0.0 0.0 0.20 $33.20 Round A Exit Total .20 50% Discount Rate (Yr) Series A Subtotal 30% Common Shares Options New Unit Price % Series B Series A 100% 100% Seed Price New Unit Series B Series A Subtotal New Units Series B Series A Subtotal Exercise Criteria Exercise Price Series B $0.0 0.00 $26.20 $72.00 $1.0 0.000 4/1/2011 Conversion Trigger Value % Series A Conversion Liq Premium % Series A -0.40 $72.40 $26.0 0.20 $33.Conversion Trigger Date Series A Convert Trigger Invest Series A Rates of Return Discount Rate (Yr) Series A Subtotal 30% $1.

000 Series B Series A 50% 50% You can edit exercise prices for individual series even though the cells are not shaded. Rates of Return Discount Rate (Yr) Series B Series A Subtotal 30% 30% IRR Initial Guess (Yr) Series B Series A Subtotal 50.0% 50.0% 50.0% .500.00 Series A Conversion Trigger Value % 4/1/2011 $1.Series A Convert Trigger Invest Series B Series A $0.500.000 $1.

Capitalization Table ABC Corp. Valuation Scenario 1 Investment Return on Investment Investment by Origin Net Investment . Investment Scenario 1.

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0 0.0 0.0 100.0 100.0 0.0 100. Valuation Scenario 1 Shares Seed Event Date 8/1/2010 Round A 7/1/2011 Exit 6/1/2012 Common Shares by Origin Seed Common Shares by Origin Conv Note Series B Series A Preferred Series A Common Warrant Option Series B Series A 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Round A Exit Total .0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.000.0 0.0 0.0 0.0 0.0 0.0 0.000.0 0.0 0.0 0.0 0.0 0.0 0. Investment Scenario 1.0 Round A Exit Net Units of Securities at End of Round Seed Net Units Conv Note Series B Series A Subtotal Preferred Series A Subtotal 0.Capitalization Table ABC Corp.0 0.000.0 0.

0 0.000.000.0 0.0 0.000.0 0.0 0.0 0.0 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 200.0 0.000.0 0.0 100.0 0.0 0.0 0.000.0 0.0 0.0 0.0 Round A Exit Total .0 0.0 0.0 0.0 0.0 0.0 100.0 100.0 0.000.000.0 0.0 0.0 0.0 Net Units During Rounds Seed Net Units Start Conv Note Series B Series A Subtotal Preferred Series A Subtotal Common Warrant Option Series B Series A Subtotal Total New Sales Conv Note Series B Series A Subtotal Preferred Series A 0.0 0.0 0.000.0 0.0 0.0 300.0 0.0 0.0 0.000.0 0.0 0.0 0.0 100.0 0.Common Warrant Option Series B Series A Subtotal Total 100.0 0.0 0.0 300.0 100.000.0 0.0 0.0 0.000.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 0.0 0.000.000.0 200.0 0.0 0.0 0.0 100.000.0 0.0 0.0 0.

0 0.000.000.0 0.0 0.0 0.0 0.0 100.0 0.0 100.0 0.0 300.0 0.0 0.0 0.0 0.0 0.000.000.0 0.0 0.0 0.0 0.0 100.0 0.0 100.0 0.0 100.0 0.0 0.0 0.0 100.0 0.0 0.0 0.000.0 0.0 0.0 0.0 100.000.0 0.000.0 0.0 0.0 0.0 300.0 0.0 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.000.0 0.000.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.Subtotal Common Warrant Option Series B Series A Subtotal Total Post Sales Conv Note Series B Series A Subtotal Preferred Series A Subtotal Common Warrant Option Series B Series A Subtotal Total Convert Conv Note Series B Series A Subtotal Preferred Series A Subtotal Common Warrant Option Series B 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 .0 0.0 0.0 0.000.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 0.0 0.0 0.0 0.0 0.000.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.000.0 0.

0 0.0 0.0 0.000.0 0.0 0.0 0.000.0 0.0 0.0 100.0 0.0 0.000.0 0.0 0.0 0.000.0 0.0 0.0 0.0 0.0 100.000.0 300.0 100.0 0.0 0.0 0.0 .0 0.0 0.000.0 0.0 0.0 0.0 0.0 0.000.0 0.000.0 0.0 0.0 100.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 0.0 100.0 0.0 0.Series A Subtotal Total End Conv Note Series B Series A Subtotal Preferred Series A Subtotal Common Warrant Option Series B Series A Subtotal Total 0.0 0.0 0.0 0.0 300.0 0.0 0.0 0.0 0.0 0.

00% 0.0 0.Capitalization Table ABC Corp.00% 0.00% 0.00% 0.0 0.0 0.0 0.0 0.0 0. Valuation Scenario 1 Conversion to Common Shares Seed Event Date 8/1/2010 Round A 7/1/2011 Exit 6/1/2012 Units Converted to Common Stock Net Units Conv Note Series B Series A Subtotal Preferred Series A Subtotal Common Warrant Option Series B Series A Subtotal Total % Converting Conv Note Series B Series A Preferred Series A Common Warrant Option Series B 0.0 0.00% 0.0 0.0 0.0 0.00% 0.0 0.0 0. Investment Scenario 1.0 0.0 0.00% 0.0 0.0 0.00% 0.0 0.0 .0 0.0 0.0 0.0 0.0 0.0 0.00% 0.00% 0.0 0.0 0.0 0.0 0.0 0.00% 0.00% 0.0 0.0 0.00% 0.0 0.0 0.00% 0.0 0.0 0.0 0.0 0.00% 0.0 0.0 0.0 0.00% 0.0 0.0 0.00% 0.00% 0.0 0.0 0.

00% 0.Series A 0.00% 0.00% Note: You can override the model's default conversion decisions by entering numerical values. Default Conversion Decisions .

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00 $0.54 $50.20 $36.20 $33.40 $26.00 $1.00 $0.40 $21.20 $33.00 $0.40 $79.54 $50.20 $33.20 $72.20 $72.52 $36.20 $59.70 $18.20 $72.20 $33.00 $0.65 $72.00 $0.48 $18.00 $1.04 $29.New Securities Seed Price New Unit Conv Note Series B Series A Subtotal Preferred Series A Subtotal Common Warrant Option Series B Series A Subtotal Total $1. Valuation Scenario 1 Preferred Shares Seed Event Date 8/1/2010 Round A 7/1/2011 Exit 6/1/2012 Prices .00 $0.04 $26.48 $50.00 $0.00 $0.54 $50.52 $33. Investment Scenario 1.40 $26.00 $29.00 $0.42 $72.70 $7.20 $27.10 $1.Capitalization Table ABC Corp.20 $0.10 $1.00 $0.40 $26.00 Round A Exit Total Conversion and Exercise Prices Convertible Notes Seed Conversion Price Series B Series A $7.00 $0.42 $79.00 $1.54 Round A Exit Total .00 $0.82 $26.22 $1.

20 $72.00 $11.70 $18.00 $26.00 $11.54 $50.20 $72.20 $72.00 $26.20 $72.40 $72.40 $72.20 $72.00 $11.20 .40 $26.40 $72.20 $11.20 $11.20 $72.Subtotal Preferred Stock Conversion Price Series A Subtotal Warrants Conversion Price Options Conversion Price Series B Series A Subtotal $7.20 $72.40 $26.00 $26.20 $72.54 $11.48 $50.40 $26.20 $72.

0 $0 $0 $0 $0 $0 0.0 Round A Exit Total Options Seed Exercise Amt Start Series B Series A Subtotal New Sales Series B Series A Subtotal Post Sales Series B $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Round A Exit Total . Valuation Scenario 1 Option Summary Seed Event Date 8/1/2010 Round A 7/1/2011 Exit 6/1/2012 Warrants Seed Exercise Amt Start New Sales Post Sales Convert End Units 'in the Money' $0 $0 $0 $0 $0 0.0 $0 $0 $0 $0 $0 0. Investment Scenario 1.Capitalization Table ABC Corp.0 $0 $0 $0 $0 $0 0.

0 0.0 0.0 0.0 0.Series A Subtotal Convert Series B Series A Subtotal End Series B Series A Subtotal Units 'in the Money' Series B Series A Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.0 0.0 0.0 0.0 0.0 .0 0.0 0.0 0.

000 $2.640.220.000 $1.000.640. Investment Scenario 1.000 $0 $0 $100.000 $0 $0 $0 $0 $0 $0 $0 $0 $100.000 $7.000 8/1/2010 Round A 7/1/2011 Exit 6/1/2012 .Capitalization Table ABC Corp.000 $7.220.000 $2. Valuation Scenario 1 Valuation Seed Event Date Start of Round Firm Value New Investment New Investment Exercise of Warrants Investment by Origin Exercise of Options Investment by Origin End of Round Firm Value $1.100.

220.000 $7.000 $7.000 $0 $7. Investment Scenario 1.100.640.000 $2.000 $2.640. Valuation Scenario 1 Payout Seed Payout Pool Conv Note Series B Series A Subtotal Preferred Series A Subtotal Common Warrant Option Series B Series A Subtotal Total $0 $0 $0 $0 $0 $0 $1.000 $1.000 $2.220.220.100.100.000 $1.000 $0 $2.000 $7.100.Capitalization Table ABC Corp.220.000 Round A Exit Total Liquidation Preference Conv Note Series B Series A Subtotal Preferred Series A Subtotal Common Warrant Option Series B Series A Subtotal Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Seed Round A Exit Total Payout Conv Note Series B Series A Subtotal Preferred Series A Subtotal Common Warrant Option Series B Series A Subtotal Total Payout Details .640.640.000 $0 $1.

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000 $0 $0 $0 $0 $2.100.00% 0.00% 0.100.00% 0.00% 0.00% 0.640.00% 0.00% 0.00% 0.640.220.00% 0.00% 100.00% 100.220.000 $0 $0 $0 $0 $7.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% .00% 0.000 $0 $0 $0 $0 $0 $7.00% 0.000 Series B Series A Subtotal Preferred Series A Subtotal Common Warrant Option Series B Series A Subtotal Total 0.00% 100.00% 0.000 $0 $0 $0 $0 $0 $2.Seed Round A Exit Total Payout % Conv Note Seed Round A Exit Total $0 $0 $0 $0 $0 $1.00% 100.000 $0 $0 $0 $0 $1.00% 0.00% 0.00% 0.

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Trigger_Date Rounds. Convert_Conditions. Convert_Conditions.Capitalization Table ABC Corp.Option.Trigger_Value_pct Rounds. Convert_Conditions. Convert_Conditions Convert_Liq_Premium_pct Convert_Trigger_Date Convert_Trigger_Invest_Amt Convert_Trigger_Value_pct Converting_pct ConvNote_Discount_pct Discount_Rate_Yr Dividend Conversion Liq Premium % Conversion Trigger Date Convert Trigger Invest Conversion Trigger Value % % Converting Note Conversion Discount % Discount Rate (Yr) Dividend Securities Rounds.Trigger_Price Rounds. Securities.Liquidation Rounds. Securities. Securities. Securities. Securities. Convert_Conditions. Investment Scenario 1. Convert_Conditions Rounds. Securities Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Roll-up: Roll-up: Dimension Index .Conv_Note. Convert_Conditions.Trigger_Value_pct Rounds. Valuation Scenario 1 Variable Company_Name Conversion_Decisions_Default Conversion_Decisions_Detail Display As Company Name Default Conversion Decisions Conversion Decisions Detail Rounds.Preferred. Securities.Trigger_Price Rounds. Convert_Conditions. Securities.Warrant.Trigger_Invest Rounds. Securities Rounds.Liquidation Rounds. Securities. Convert_Conditions. Securities.Common Roll-up: Data: Rounds. Convert_Conditions. Securities.Conv_Note.Common.Preferred. Securities.

End. Securities.New_Sales.End Rounds.New_Sales. Securities. Securities Rounds. Phases.End.Start Rounds.Rounds. Phases.Warrant Rounds. Phases. Phases. Phases. Securities Rounds. Securities Invest_by_Origin_exDiv_LastRnd Investment_by_Origin Invest by Origin ex-Dividend Investment by Origin Phases.Common Rounds. Phases. Securities Dividend_Common Dividend_pct_Yr Event_Date Event_Date_Sc0 Firm_Value Dividend Common Dividend % (Yr) Event Date Event Date Firm Value Rounds Rounds Rounds. Securities. Phases. Securities Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: .New_Sales Firm_Value_Start Firm_Value_Start_Sc0 Invest_by_Origin_exDiv Firm Value Start Firm Value Invest by Origin ex-Dividend Rounds Rounds Rounds.Convert.Post_Sales Rounds.Convert. Phases. Securities Rounds. Phases. Phases. Securities Rounds.Post_Sales. Phases. Phases. Securities Rounds. Securities Dividend_by_Origin Dividend by Origin Rounds.Convert. Phases.Convert Rounds.Option Rounds. Phases.Start. Securities Rounds.

Convert. Securities.Start.Warrant Rounds.End.Option Rounds. Securities Rounds.Start. Phases. Phases. Securities Investment_New Investment_New_Sc0 IRR_Cash_Flow New Investment New Investment Cash Flow Rounds. Securities Rounds.Rounds.Start. Phases. Phases.End. Phases. Securities Rounds.New_Sales. Securities Rounds. Phases. Phases.Common Rounds. Securities Data: Data: Data: Data: Data: Data: Data: Securities Roll-up: .Post_Sales. Rounds Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Roll-up: IRR_Initial_Guess_Yr IRR_XIRR_Yr Liq_Multiple Liq_Preference_End Liq_Preference_New Net_Present_Value_XNPV OptionWar_Exercise_Amt IRR Initial Guess (Yr) IRR (Yr) Liq Multiple Liquidation Preference Liq Preference New Net Present Value Exercise Amt Rounds. Phases. Phases. Securities Rounds. Securities Rounds. Phases. Phases.Post_Sales. Securities Securities Rounds. Securities.New_Sales. Securities Rounds. Securities Rounds.New_Sales. Securities Securities. Phases.New_Sales.Post_Sales. Securities Rounds. Securities. Phases. Securities Rounds. Phases. Securities Investment_Net Net Investment Rounds.End.

Securities. Securities.Preferred Rounds. Securities.Rounds. Securities Price_Common_Init Price_Premium_pct Initial Common Price Price Premium % Rounds. Securities Data: Data: Data: Data: Data: Roll-up: Payout_by_Origin_Last Payout_by_Origin_pct Payout_by_Origin_pct_LastRnd Payout_End Payout by Origin Payout by Origin % Payout by Origin % Payout Securities Securities. Securities. Rounds Rounds.Option Payout_by_Origin Payout by Origin Rounds. Securities.Common Rounds. Securities. Securities.Warrant Rounds.Option Rounds. Securities OptionWar_Exercise_Price OptionWar_in_Money Exercise Price Units 'in the Money' Rounds.Conv_Note Rounds. Rounds Securities Rounds. Phases. Securities. Securities. Securities Data: Data: Data: Price_Unit_Conv Conversion Price Rounds.Preferred Rounds. Securities.Warrant Rounds.Common Rounds.Common . Securities Roll-up: Roll-up: Roll-up: Data: Data: Data: Data: Data: Roll-up: Roll-up: Data: Roll-up: Payout_End_pct Payout_Pool_End Payout % Payout Pool Securities.Convert.

End. Phases. Securities. Securities. Securities.Preferred Rounds.Preferred Rounds.Option Rounds. Securities Rounds. Phases.Rounds. Securities.Option Rounds.Common Rounds.New_Sales. Securities.Option Rounds. Securities Data: Data: Data: Data: Data: Data: .Common Rounds.Conv_Note Rounds.Preferred Rounds.Conv_Note Price_Unit_New Price New Unit Rounds. Securities. Securities. Phases.New_Sales. Securities Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Data: Roll-up: Roll-up: Data: Data: Data: Data: Roll-up: Split_Factor_Start Units_Net Split Factor Net Units Rounds.Common Rounds. Securities Price_Unit_New_pct Price_Unit_Start New Unit Price % Share Price Rounds. Securities. Securities. Securities.Warrant Rounds. Phases. Securities Return_Multiple Scenarios_Invest_Dim Scenarios_Value_Dim Shares_Common_by_Origin Return Multiple Investment Scenarios Scenarios_Value_Dim Common Shares by Origin Securities Scenarios_Invest Scenarios_Value Rounds.Warrant Rounds.New_Sales. Securities.Start. Securities. Securities. Phases.Common Rounds. Securities. Phases.Warrant Rounds.Convert. Securities.

Post_Sales. Rounds Data: Data: Data: Data: .Rounds. Phases. Securities Units_New Units_New_Sc0 New Units Sold New Units Securities. Phases. Securities Rounds. Securities Rounds.Convert. Phases.End.

Liq_Preference_End)+Investment_New*Liq_Multiple. 1. 0) if(OptionWar_Exercise_Price<Price_Unit_Conv["Securities.Post_Sales"]+Investment_by_Origin["Securities.Post_Sales"]>Investment_by_Origin["Securities.Post_Sales"].Conv_Note".End"])+Dividend+Investment_New)/(1+Price_Premium_pct)>(1+Convert_Liq_Premium_pct)*prevde(0. 0) if(Convert_Trigger_Value_pct*Firm_Value["Phases.Common"]. "Phases.Post_Sales"]>=var(Conver Conversion_Decisions_Default "" Dividend_Common . 1. "Rounds". 1. "Phases.Common".Formula / Data abs(product(ranged("Convert_Conditions". Investment_Net["Phases.Post_Sales"]+Investment_by_Origin["Securities. 0) if(Convert_Trigger_Value_pct*Firm_Value["Phases.Conv_Note". "Phases. 1.Conv_Note". " ") if((prevde(0. "Phases. 0) if((prevde(0. if(Investment_by_Origin["Securities.Post_Sales"]>Investment_by_Origin["Securities. "Rounds". Conversion_Decisions_Detail))) if(OptionWar_Exercise_Price<Price_Unit_Conv["Securities.Preferred". 0)) 0 ifm(and(isleafd("Securities"). abs(product(ranged("Convert_Conditions"))).End"])+Dividend+Investment_New)/(1-ConvNote_Discount_pct)>(1+Convert_Liq_Premium_pct)*(prevde(0. isleafd("Rounds")). 1. "Rounds". "Rounds". 1. Liq_Preference_End)+Investment_New*Liq_Multiple). 0) var(if(Event_Date>=Convert_Trigger_Date. Investment_Net["Phases.Common"]. "Phases.Post_Sales"].

Lastd("Phases". Event_Date))/365+Dividend_Common*prevde(0. "Rounds". Shares_Common_by_O Event_Date_Sc0 date(2010. 1) Firstd("Phases". Lastd("Phases". "Rounds".4*dimitemnum("Rounds")). Firm_Value)+Firm_Value["Phases.Convert"] Investment_Net Investment_by_Origin["Phases. "Rounds".New_Sales"] Lastd("Rounds".Post_Sales"]+Invest_by_Origin_exDiv["Phases.6+0.Post_Sales"]+Investment_by_Origin["Phases. prevde(firstd("Rounds".Convert"] Firm_Value["Phases.New_Sales"] OptionWar_Exercise_Amt["Phases.Convert"] Firm_Value_Start Investment_Net Firm_Value_Start_Sc0 var(round(1000000*dimitemnum("Rounds")^(0.Convert"] OptionWar_Exercise_Amt["Phases. Event_Date). Units_Net["Securities.Convert"] . -4)) prevde(0. Investment_Net))*var(Event_Date-prevde(firstd("Rounds". "Rounds".Dividend_pct_Yr*prevde(0. Event_Date)))/365 Dividend_Common*prevde(0.Common"])) Dividend_pct_Yr*prevde(0. Invest_by_Origin_exDiv)) Invest_by_Origin_exDiv["Phases. Lastd("Phases". Invest_by_Origin_exDiv)+Invest_by_Origin_exDiv["Phases. "Rounds". "Rounds".Post_Sales"]+Firm_Value["Phases. "Rounds". 11*dimitemnum("Rounds")-3. Event_Date). Shares_Common_by_Origin/Lastd("Phases". Invest_by_Origin_exDiv) OptionWar_Exercise_Amt["Phases. Investment_Net))*var(datediff(Event_Date.Convert"] Investment_by_Origin Investment_by_Origin Firstd("Phases".

dimitemnum("Rounds")=1).New_Sales"])*Liq_Multiple) -xnpv(Discount_Rate_Yr. 0))-if(iserror(nextd("Rounds". "Rounds". 0) ifm(isleafd("Rounds").Convert"] prevde(0. "Rounds".Convert"] Units_Net["Phases. "Phases.Post_Sales"]+Investment_Net["Securities". "Phases. 0*0. (Dividend+Investment_Net["Phases. "Rounds". Investment_Net)+Investment_Net["Phases. 100000. IRR_Cash_Flow).New_Sales"] . 0)) Investment_by_Origin["Phases. OptionWar_Exercise_Amt)+OptionWar_Exercise_Amt["Phases.Convert"]+OptionWar_Exercise_Amt["Securities".Post_Sales"]-Investment_Net["Phases. Investment_Net))+Dividend Investment_Net["Phases. OptionWar_Exercise_Amt)) Units_New*OptionWar_Exercise_Price Firstd("Phases".Convert"])*Liq_Multiple) max(0. Payout_by_Origin)).Post_Sales"]-OptionWar_Exercise_Amt["Phases. Lastd("Phases".Convert"]+var(ifm(dimitemnum("Rounds". "") XIRR(ranged("Rounds". IRR_Cash_Flow)). Event_Date)) OptionWar_Exercise_Amt["Phases. Payout_by_Origin). ranged("Rounds".New_Sales"]-Investment_Net["Phases.New_Sales"]+Investment_by_Origin["Phases. sum(rangedru("Securities".New_Sales"]*Price_Unit_New Units_Net["Phases. 0)=1.New_Sales"] prevde(0. ranged("Rounds". 0)="Common".Firstd("Phases". Lastd("Phases". lastd("Phases". "Rounds".Convert"] Firstd("Phases".Post_Sales"] Investment_New_Sc0 var(ifm(and(diminfo("Securities".New_Sales"] Investment_New Converting_pct*Investment_Net["Phases. prevde(0. Investment_by_Origin)+Investment_by_Origin["Phases. Event_Date). Liq_Preference_End)+(Dividend+Investment_Net["Phases. IRR_Cash_Flow). Investment_by_Origin))+Dividend Investment_Net["Phases.New_Sales"]*Price_Unit_New prevde(0. Lastd("Phases". ranged("Rounds". IRR_Initial_Guess_Yr) max(0.

Payout_by_Origin/Payout_by_Origin["Securities"]. Payout_Pool_End-Payout_End. (Firm_Value["Phases.Common"])=0. 1. Units_Net["Securities.10.New_Sales"]+OptionWar_Exercise_Amt["Securities".Common"]<=OptionWar_Exercise_Price.Conv_Note".Post_Sales"]-Liq_Preference_End["Securities.Common"])*Payout_End["Securities. Units_Net)*Price_Unit_Conv["Securities.Common"])+OptionWar_in_Money["Securities"])*Payout_Pool_End["Securities. if(Units_Net["Phases. Units_Net["Securities. 0.Post_Sales"]=0. Payout_by_Origin) ifm(isleafd("Rounds"). Liq_Prefer . Units_Net)/(Lastd("Phases". Payout_by_Origin_pct) Lastd("Phases". "Phases. 0.Common"])) ifm(isleafd("Rounds").Common"])) min(Payout_Pool_End. Units_Net)) if(Lastd("Phases".Common"]) Payout_End+if(Lastd("Phases".Common"] OptionWar_in_Money/(Lastd("Phases".Post_Sales"] if(Price_Unit_Conv["Securities. "") prevde(var(Firm_Value_Start)+Investment_Net["Securities". "Rounds") max(0. Lastd("Phases".Preferred"]-sum(ranged("Securities. Lastd("Phases".Common"])+OptionWar_in_Money["Securities"])*Payout_Pool_End["Securities. 0. Units_Net)) if(Price_Unit_Conv["Securities.Common"])=0. Units_Net["Securities.Common"]<=OptionWar_Exercise_Price. Units_Net)+OptionWar_in_Money["Securities"])*Payout_Pool_End OptionWar_in_Money/(Lastd("Phases". "Rounds") prevde(0. 0) "" prevde(0. 0. sum(rangedru("Securities". Payout_End/Payout_End["Securities"]. 0. Units_Net["Securities. " ") Lastd("Rounds". "Securities". "") Lastd("Rounds". Investment_Net)/Price_Unit_Conv*Price_Unit_Conv["Securities. Lastd("Phases". Units_Net["Securities. max(Liq_Preference_End. max(Liq_Preference_End.Conv_Note"]-Liq_Preference_End["Securities.Common"] min(Payout_Pool_End. Payout_End)). Units_Net["Securities. Payout_by_Origin)).Convert"]. Shares_Common_by_Origin/Lastd("Phases".Converting_pct*OptionWar_Exercise_Amt["Phases. "") ifm(isleafd("Rounds").Common"]) ifm(isleafd("rounds"). sum(rangedru("Securities". Lastd("Phases". Shares_Common_by_Origin/Lastd("Phases". "Phases.Common"])*Payout_End["Securities.

Common"]=0.New_Sales"] prevde(0. Price_Unit_Conv["Securities.Conv_Note"])-Firstd("Phases".Convert"] ifm(isleafd("Rounds").Common"]-OptionWar_Exercise_Price) max(0. Price_Unit_Conv["Securities. Firm_Value)-Firstd("Phases". Units_New))/sum(rangedru("Securities". sum(rangedru("Securities". Investment_by_Origin["Securities. (Firstd("Phases".Common"]-OptionWar_Exercise_Price) max(0. "") If(Lastd("Rounds". "Rounds".Common"])-OptionWar_Exercise_Price)) max(0. Dividend)))/(Lastd("Rounds". Invest_by_Origin_exDiv))+0*0=0. Lastd("Phases".Post_Sales"]+Units_Net["Phases. Shares_Common_by_Origin)). Shares_Common_by_Origin)) Units_Net["Phases.Common"])-OptionWar_Exercise_Price) Price_Unit_Start["Securities.Common"]) max(0.Convert". Lastd("Phases". Shares_Common_by_Origin)*Split_Factor_Start+Units_Net["Phases. Lastd("Phases". 0. Price_Unit_Conv["Securities.Common"]*(1-ConvNote_Discount_pct)) max(0. var(Price_Unit_Start["Securities.Common"])-OptionWar_Exercise_Price)) Price_Unit_Start if(dimitemnum("Rounds")=1. Shares_Common_by_Origin)*Split_Factor_Start+Units_Net["Phases. Price_Unit_New_pct*(var(Price_Unit_New["Securities. var(Price_Unit_Start["Securities. Units_New))). Invest_by_Origin_exDiv))+0*0)) dimitemnum("Scenarios_Invest") dimitemnum("Scenarios_Value") prevde(0. if(sum(rangedru("Securities". "Securities"] if(Price_Unit_Start["Securities. Investment_by_Origin["Securities. rangedru("Securities". Payout_by_Origin)+sum(ranged("Rounds". lastd("Rounds".Common"])/(1-ConvNote_Discount_pct) Investment_Net/Price_Unit_Start/(1-Price_Premium_pct) Units_New prevde(0. sumproduct(rangedru("Securities". Investment_Net/Price_Unit_Start["Securities. Price_Unit_New_pct*(var(Price_Unit_New["Securities. Units_Net))*Split_Factor_Start . (Lastd("Rounds".Common"]) Converting_pct*Investment_Net["Phases. Price_Unit_Start). "Rounds".Common"]*(1+Price_Premium_pct) ifm(isleafd("Rounds"). "Rounds".Post_Sales"]/var(Price_Unit_Conv["Securities. Price_Unit_Conv["Securities. Unit max(0. Units_New))=0. 0. 0.max(0.Common"])-OptionWar_Exercise_Price) max(0.Preferred"]))/(Firstd("Phases". Price_Common_Init.

Convert"] Firstd("Phases". Units_New_Sc0).New_Sales"] var(index(ranged("Scenarios_Invest". Units_Net)+Units_Net["Phases.Converting_pct*Units_Net["Phases.Post_Sales"]-Units_Net["Phases.Post_Sales"] Units_Net["Phases. 1)) .

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Investment Scenario 1. Valuation Scenario 1 Variable Company_Name Conversion_Decisions_Default Display Label Company Name Default Conversion Decisions Conversion_Decisions_Detail Conversion Decisions Detail Convert_Liq_Premium_pct Conversion Liq Premium % Convert_Trigger_Date Conversion Trigger Date .Capitalization Table ABC Corp.

Convert_Trigger_Invest_Amt

Convert Trigger Invest

Convert_Trigger_Value_pct

Conversion Trigger Value %

Converting_pct

% Converting

ConvNote_Discount_pct

Note Conversion Discount %

Discount_Rate_Yr Dividend Dividend_by_Origin

Discount Rate (Yr) Dividend Dividend by Origin

Dividend_Common Dividend_pct_Yr Event_Date Event_Date_Sc0 Firm_Value

Dividend Common Dividend % (Yr) Event Date Event Date Firm Value

Firm_Value_Start Firm_Value_Start_Sc0

Firm Value Start Firm Value

Invest_by_Origin_exDiv

Invest by Origin ex-Dividend

Invest_by_Origin_exDiv_LastRnd

Invest by Origin ex-Dividend

Investment_by_Origin

Investment by Origin

Investment_Net

Net Investment

Investment_New

New Investment

Investment_New_Sc0

New Investment

IRR_Cash_Flow

Cash Flow

IRR_Initial_Guess_Yr IRR_XIRR_Yr

IRR Initial Guess (Yr) IRR (Yr)

Liq_Multiple Liq_Preference_End

Liq Multiple Liquidation Preference

Liq_Preference_New

Liq Preference New

Net_Present_Value_XNPV OptionWar_Exercise_Amt

Net Present Value Exercise Amt

OptionWar_Exercise_Price

Exercise Price

OptionWar_in_Money Payout_by_Origin

Units 'in the Money' Payout by Origin

Payout_by_Origin_Last

Payout by Origin

Payout_by_Origin_pct

Payout by Origin %

Payout_by_Origin_pct_LastRnd Payout by Origin % Payout_End Payout Payout_End_pct Payout_Pool_End Payout % Payout Pool Price_Common_Init Price_Premium_pct Initial Common Price Price Premium % Price_Unit_Conv Conversion Price Price_Unit_New Price_Unit_New_pct Price_Unit_Start Price New Unit New Unit Price % Share Price Return_Multiple Return Multiple Scenarios_Invest_Dim Investment Scenarios .

Scenarios_Value_Dim Shares_Common_by_Origin Split_Factor_Start Units_Net Scenarios_Value_Dim Common Shares by Origin Split Factor Net Units Units_New New Units Sold Units_New_Sc0 New Units Dimension (item) Convert_Conditions Display Item As Convert Conditions Total As Total Level As Convert_Conditions Trigger_Date Trigger_Invest Trigger Date Trigger Invest Convert_Conditions .

Trigger_Value_pct Liquidation Trigger_Price Phases Trigger Value % Liquidation Trigger Price Phases Total Phase Start New_Sales Post_Sales Convert End Rounds Seed Round_A Exit Securities Start New Sales Post Sales Convert End Rounds Seed Round A Exit Securities Total Total Phase Rounds Rounds Security .

Conv_Note Series_B Series_A Preferred Series_A Common Warrant Option Series_B Series_A Conv Note Series B Series A Preferred Series A Common Warrant Option Series B Series A Subtotal Security Security 2 Subtotal Subtotal .

then the company has the right to convert the security to common stock when all the conditions are met. The cell values have these meanings: +1: conversion condition is satisfied 0 : conversion condition is not satisfied -1: means conversion condition is not relevant You can override these conversion decisions by entering values in variable 'Converting %'. Date at which securities can first be converted or exercised to obtain common stock.Comment Name of the company This variable encodes the default conversion decisions for securities. 4) For notes and preferred: value of commmon shares obtained > (1+premium) * liquidation preference. in order for the default conversion condition to be satisfied. preferred and notes exceeds the trigger investment threshhold 3) For notes and preferred: the value of the company exceeds a safety criterion (investment in notes + preferred must be less than a stated fraction of firm value). Conversion of securities to common stock must produce this value premium over liquidation preference. found in variable 'Convert %'. 5) For warrants and options: common share price >= exercise price. +1 means all conversion conditions are satisfied 0 means some conversion condition is not satisfied This information determines the default values for conversion percents for each security in each round. A date beyond the end of model time indicates that there is no trigger date for conversion of the security. The default conversion decision for each security is positive (negative) if all these built-in conditions are satisfied (not satisfied). You can get detail on which conversion conditions are or are not satisfied in variable 'Conversion Decisions Detail'. 1) The date of the current round has reached the trigger date 2) The sum of investments in common. If < 0. .

determined by investment scenario selected Date of each investment round Firm value at phases Start.) Percent of outstanding convertible notes and preferred stock converting. The discount percent on prevailing common share price that accrue to holders of each series of convertible security at the time of conversion or exercise. and common stock. Annualized discount rates used in computation of present values of investor cash flows Dividend in kind for convertible notes (before conversion). These default decisions are computed in the variable 'Conversion Decisions Default'. The dividends are segmented by the original type and series of security whose purchase earned the dividend (not by the current type and series of security that earned the dividend). Maximum fraction of the value of a firm that can be in senior securities in order that a series of convertible securities converts. This discount is a reward for investing early when the risk was presumed higher. paid at start of each investment round. A new investment (including paying the exercise price to exercise a warrant or option) increases the value of the firm by the amount of the new investment. and interest rate paid on convertible notes before conversion Date of each investment round. and percent of outstanding warrants and options exercising in each investment round. paid at start of each investment round Dividend in kind for convertible notes (before conversion). (Other conversion criteria involve dates and minimum equity funding raised by the company. for each investment round.Minimum amount of equity capital that the company must raise before securities can be converted or exercised to obtain common stock. and change in firm value at phases New Sales and Convert. and common stock. An amount greater than the capitalization of the company indicates that the security cannot be converted (or exercised). Dividend paid on common stock. preferred stock (before conversion). preferred stock (before conversion). The model starts with default decisions for what securities to exercise or convert and when. You can override the default conversion decisions by entering new values. Post Sales. and End. Valuation of the firm at the start of each investment round Valuation of the firm at the start of each investment round . paid at the beginning of each investment round Dividend rate for preferred stock.

not new investment. The phase are: * Start = investment in securities at the beginning of the round * New Sales = new investment in securities in the round * Post Sales = gross investment in securities after sale of new securities * Convert = added investment in exercise $ amounts for exercised warrants and options * End = investments at the end of the round (which still include amounts converted). by investment round. investment round. Converted notes and preferred shares and exercised warrants and options are subtracted and added to common stock. not new investment. segmented by type of security. Exercise $ amounts for warrants and options are added to Net Investment for common stock. and excluding preferred dividends and interest payments on notes. preferred and common shares. The phase are: * Start = outstanding investment in securities at the beginning of the round * New Sales = new investment in securities in the round * Post Sales = gross investment in securities after sale of new securities * Convert = investment value of securities being converted (notes) or exercised (warrants and options) * End = investments at the end of the round (with converted and exercised securties recorded as common stock) New investments due to sale of new convertible notes. investment scenario 1. preferred and common shares. New investments due to sale of new convertible notes. segmented by type of security. New warrants and options are tracked in variable Shares_New because they are specified by number of new shares. New warrants and options are tracked in variable Shares_New because they are specified by number of new shares. segmented by type of security.Gross investment including value of converted securities. Net investment at each phase of each investment round. and phase. . and excluding preferred dividends and interest payments on notes. Converted notes and preferred shares and exercised warrants and options remain in their respective security types and series. by investment round. by investment round Gross investment including value of converted securities. by investment round Gross investment. segmented by type and series of security.

The common payout pool covers common shares. Initial guess at internal rate of return of the cash flow for holders of each series and type of security. Each series and type of security can have its own discount rate to reflect different risks. which amount is added to Investment by Origin for the warrant or option. to start the iterative solution for the IRR Internal rate of return of cash flow to holders of each series and type of security. exercise payments (for warrants and options) and final payout at the end of the last investment round. the amount of exercise payments made to exercise warrants and options in each round. The percentage of funds paid out that are imputed (if paid) to original investments in each type of security. Includes new investments. and added to Net Investment for common stock. at the end of each investment round. in the event of liquidiation). Funds paid out that are imputed (if paid) to original investments in each type of security. Used in variable Payout in denominators of formulas. including exercised warrants and options. The multiple of new investment that is added to liquidation preference for each class of security. Warrants and options are exercised if they are in the money. the holder pays the exercise price to the company in cash. The common payout pool covers common shares. at the last phase (End) of each round Net present value of cash flows to each series of each type of security. at the end of each investment round.Cash flows used to compute present values and internal rates of return for each series and type of security. . Warrants and options are exercised if they are in the money. The amount of exercise payments due upon exercise of outstanding warrants and options. Exercise price for each class of stock option. Includes founders non-cash contributions in the first round and payouts in the last round. in the event of liquidiation). For Phase Convert. The common payout pool covers common shares. Warrants and options are exercised if they are in the money. including exercised warrants and options. Upon exercise of a warrant or option. at the last phase (End) of each round The amount of new liquidiation preference that is due to each class of security (before anything is paid to holders of junior securities. for each investment round. in each investment round The amount of liquidiation preference that is due to each class of security (before anything is paid to holders of junior securities. at the end of the last investment round. Funds paid out that are imputed (if paid) to original investments in each type of security. Number of unexercised warrants and options that are in the money in phase End. including exercised warrants and options.

Conversion occurs after sale of new securities in each round. The premium reflects the contingent value of preference payments and preference dividends.The percentage of funds paid out that are imputed (if paid) to original investments in each type of security. including exercised warrants and options. Conversion prices in general differ from prices for sale of new securities in an earlier phase. ignoring the variance of stock price over time. . Initial common share price at the start of the seed round Price premium for a preferred share unit over common stock at time of purchase. * Conversion price of notes is common share price less a discount percent specified by the note. The common payout pool covers common shares. The multiple of investment (ex-dividends) that each type of security gets. including exercised warrants and options.exercise price). Warrants and options are exercised if they are in the money. The percentage of the entire payout that is paid to each type of security in the final (exit) round The amount of funds available for payout to each type of security at phase End (after conversion of notes and exercise of warrants and options). * Conversion price of preferred shares is common share price plus a specified preferred share price premium. in each investment round. The price of each type of security at the start of each investment round. The common payout pool covers common shares. Ratio (price at which new units are purchased) / (common share price . The value of founders' noncash contributions are included as investments in this computation. The amount of funds that would be paid to each type of security if liquidation occurs at the end of an investment round. Warrant and option prices are based on current stock price. in option pricing models. Warrants and options are exercised if they are in the money. The common payout pool covers common shares. These prices for unexercised options do not account for effects of stock volatility etc. including exercised warrants and options. Prices for sale of new securities in general differ from prices for conversion or exercise of securities in transactions at a later phase. at the end of the last investment round. Price at which securities convert to common stock in each investment round. This is a straight multiple with no discounting for the time value of money. * Conversion price of common shares is the current common share price after completion of sale of new securities Price at which new warrants and options are purchased.

from which new shares are computed. . preferred stock and common stock are input as new investment. recorded at the end of each investment round Factor by which common shares are split before the start of each investment round The number of units of each type of security outstanding or transacted at each phase in each investment round. by investment round. for investment scenario 1. The transaction phases within each funding round are: * Start = outstanding securities at the beginning of the round * New Sales = sales of new securities in the round * Post Sales = outstanding securities after sale of new securities * Convert = securities being converted (notes) or exercised (warrants and options) * End = outstanding securities after conversions are executed. "Net" means net of conversions and exercises. from which new shares are computed. Sales of new convertible notes. 5) For warrants and options: common share price >= exercise price.Number of common shares that originated from conversion or exercise of each type of security or sale of common shares. For convertible notes. Sales of new convertible notes. Numbers of new warrants and options sold. which is the end of the round Splits occur between rounds. 4) For notes and preferred: value of commmon shares obtained > (1+premium) * liquidation preference. Warrants and options can be exercised for common shares on one-for-one basis. preferred stock and common stock are input as new investment. share numbers are shown as zero. preferred and notes exceeds the trigger investment threshhold 3) For notes and preferred: the value of the company exceeds a safety criterion (investment in notes + preferred must be less than a stated fraction of firm value). Comment The default conversion decision for each security is positive (negative) if all these built-in conditions are satisfied (not satisfied). and are included in Start totals. by investment round. 1) The date of the current round has reached the trigger date 2) The sum of investments in common. Numbers of new warrants and options sold.

A list of the funding rounds The types of securities and the series within each type. .The transaction phases within each funding round. * A convertible note is a loan that is convertible to common stock subject to certain restrictions of time and circumstances. and are included in Start totals. The phases are: * Start = outstanding securities at the beginning of the round * New Sales = sales of new securities in the round * Post Sales = outstanding securities after sale of new securities * Convert = securities being converted (notes) or exercised (warrants and options) * End = outstanding securities after conversions are executed. and may have preferential voting rights. * Preferred stock is equity that has preference rights over common stock in payouts from the company. usually accrues a dividend in each time period. but not in exported spreadsheets. may be convertible to common stock under some circumstances. * A warrant is an option that is issued by and guaranteed by the company (whereas options are not so guaranteed) * An option means a "call option" to buy one share of common stock at a fixed "exercise price" before the end of life of the option. You can add new types of securities and new rounds in ModelSheet. which is the end of the round Dividends are paid and splits occur between rounds.

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