Post Money - Exit Values

Exit Valuation
Exit Valuation 50,000,000

Exit Values
Stake - Post Money Exit Value

Founder/Promoter 1 19.3% 9,670,290

Founder/Promoter 2 19.3% 9,670,290
Founder/Promoter 3 0.0% 0
Founder/Promoter 4 0.0% 0
Founder/Promoter 5 0.0% 0
Others 1 0.0% 0
Others 2 0.0% 0
Others 3 0.0% 0
Others 4 0.0% 0

Total Promoter's Share 38.7% 19,340,580

Investors
Investor 1 20.0% 10,000,000
Investor 2 20.0% 10,000,000
Investor 3 0.0% 0
Investor 4 0.0% 0
Investor 5 0.0% 0

Total 40.0% 20,000,000

Debt 0.5% 258,333

Pre-Money Options
Employee 1 1.9% 967,029
Employee 2 1.0% 483,514
Employee 3 1.0% 483,514
Employee 4 1.0% 483,514
Employee 5 1.0% 483,514

Total 5.8% 2,901,087

Post-Money Options 15.0% 7,500,000

Total 100.0% 50,000,000

Pre Money & Post Money Analysis

Pre Money Analysis

Common Stock Distribution (No of Shares

Number of Shares Stake

Founder/Promoter 1 2,000,000 43.1%
Founder/Promoter 2 2,000,000 43.1%
Founder/Promoter 3 - 0.0%
Founder/Promoter 4 - 0.0%
Founder/Promoter 5 - 0.0%
Others 1 - 0.0%
Others 2 - 0.0%
Others 3 - 0.0%
Others 4 - 0.0%

Total Common Stocks 4,000,000 86.2%

Pre Money Options (vested)

Employee 1 200,000 4.3%
Employee 2 100,000 2.2%
Employee 3 100,000 2.2%
Employee 4 100,000 2.2%
Employee 5 100,000 2.2%

Total Pre Money Options 600,000 12.9%

Conversion of Debt
Debt 1 9,667 0.2%
Debt 2 10,311 0.2%
Debt 3 9,667 0.2%
Debt 4 10,311 0.2%

Total Number of Common Shares for Lendors 39,955 0.9%

Total Number of Common Shares and Pre - Money Options 4,639,955 100.0%

Stake Distribution (Pre-Money)

Founder/Promoters 86.2%
Pre- Money Option 12.9%
Others 0.9%

Total 100.0%
Pre-Money Share Price
Pre-Money Valuation 6,000,000
Total Stocks and Pre-money options 4,639,955

Pre Money Share Price 1.29

Post Money

Funding
Investor 1 2,000,000
Investor 2 2,000,000
Investor 3 0
Investor 4 0
Investor 5 0

Total 4,000,000

Post Money Valuation

Pre Money Value 6,000,000
Funding 4,000,000
Post Money Valuation 10,000,000

Share Distribution (Post Money)

Amount No of Shares
Founder/Promoter 1 2,000,000
Founder/Promoter 2 2,000,000
Founder/Promoter 3 0
Founder/Promoter 4 0
Founder/Promoter 5 0
Others 1 0
Others 2 0
Others 3 0
Others 4 0

Founder/Promoter 4,000,000

Shares for Lenders (Seed Stage)

Debt 1 12,926
Debt 2 13,788
Debt 3 12,926
Debt 4 13,788

Total 53,428

Investor 1 2,000,000 2,068,190

Investor 2 2,000,000 2,068,190
Investor 3 0 0
Investor 4 0 0
Investor 5 0 0

Total 4,000,000 4,136,381

Total Pre Money Options

Employee 1 200,000
Employee 2 100,000
Employee 3 100,000
Employee 4 100,000
Employee 5 100,000

Total Pre Money Options 600,000

New Options Issued 1,551,143

Total Number of Shares 10,340,952

Post Money Share Price

Post Money Valuation 10,000,000
Number of Shares 10,340,952

Post Money Share Value 0.97

Stake Distribution
Post Money Pre Money
Founder/Promoters 38.7% 86.2%
Investors 40.0% 0.0%
Pre- Money Option 20.8% 12.9%
Others 0.5% 0.9%

Total 100.0% 100.0%

Value of the Stake (Pre-
Money)
2,586,232
2,586,232
0
0
0
0
0
0
0

5,172,464

258,623
129,312
129,312
129,312
129,312

775,870

12,500
13,333
12,500
13,333

51,667

6,000,000
Stake
19.3%
19.3%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%

38.7%

0.1%
0.1%
0.1%
0.1%

0.5%

20.0%
20.0%
0.0%
0.0%
0.0%

40.0%

1.9%
1.0%
1.0%
1.0%
1.0%

5.8%

15.0%

100.0%
IRR
IRR Calculation
Base Case Scenario A Scenario B

Deviation from Base Case of EBITDA Base Case -10% -5%

EBITDA 10,000,000 9,000,000 9,500,000
Exit Multiple (P/E) 5 5 5
Value of The Company 50,000,000 45,000,000 47,500,000
Years to Harvest 4.00 4.00 4.00
Post Money Valuation 10,000,000 10,000,000 10,000,000

IRR 38% 35% 37%

Scenario C Scenario D

5% 10%
10,500,000 11,550,000
5 5
52,500,000 57,750,000
4.00 4.00
10,000,000 10,000,000

39% 42%
Assumptions

Pre Money
No of Common Stock (pre money)
Founder/Promoter 1 2,000,000
Founder/Promoter 2 2,000,000
Founder/Promoter 3
Founder/Promoter 4
Founder/Promoter 5
Others 1
Others 2
Others 3
Others 4

Total Promoter's Share 4,000,000

Pre Money Options (vested)

Employee 1 200,000
Employee 2 100,000
Employee 3 100,000
Employee 4 100,000
Employee 5 100,000

Total Pre Money Options 600,000

Convertible Debts Amount (at Seed Stage)

Amount Debt Discount Face Value
Debt 1 10,000 20% 12500
Debt 2 10,000 25% 13333
Debt 3 10,000 20% 12500
Debt 4 10,000 25% 13333

Total Number of Shares 39,955

Total Common Stock and Options 4,639,955

Pre Money Valuation (Amount) 6,000,000

Pre Money Share Price 1.29

Post Money
Funding (Amount)
Investor 1 2,000,000
Investor 2 2,000,000
Investor 3
Investor 4
Investor 5
Total 4,000,000

New Options to be Issued

New Options Issued (As % of Total Number of Shares after Post
Money) 15%

Exit Value

EBITDA 10,000,000
EV/EBITDA 5
EV of the Company 50,000,000

Number of Years 4
Input the Values
Calculated Values

Number of Shares Equivalent if convertible

9667
10311
9667
10311