Term
| # of Shares in New Equity Pool |
|
Definition
| [(Total Current Outstanding Shares) / (1 – Size of New Pool)] – (Total Outstanding Shares) |
|
|
Term
| Multiple of Share Price Change |
|
Definition
| New Share Price / Old Share Price |
|
|
Term
|
Definition
| Amount Invested / Number of Shares Issued |
|
|
Term
| Fully Diluted Ownership % |
|
Definition
| (Total Shares Owned) / (Total Outstanding Claims to Equity) |
|
|
Term
|
Definition
| Total Number of Shares x Desired % Ownership |
|
|
Term
|
Definition
| Shares in Option Pool – Shares Transferred |
|
|
Term
| Future Value of an Investment |
|
Definition
| Amount Invested x (1+ROR)^ #of years held |
|
|
Term
|
Definition
| Capital Returned / Anticipated Exit |
|
|
Term
|
Definition
| Amount Invested / Equity Received for Investment |
|
|
Term
|
Definition
| (Investment) / (Revised Equity Ownership) |
|
|
Term
| Equity Needed (Retention Ratio) |
|
Definition
| (% Ownership needed at Exit) / (1 – Expected Future % Equity Sold) |
|
|
Term
| New Equity Pool after issuance |
|
Definition
| [(Total Shares) / (1 - % equity created)] – Total Shares |
|
|
Term
|
Definition
| (Exit Value) / (1 + ROR)^# Years held |
|
|
Term
|
Definition
| (Present value of scenario) x (Probability of occurrence) |
|
|
Term
|
Definition
| Add all 3 “Revised present values” together |
|
|
Term
| Ownership Requirement at Exit |
|
Definition
| (Investment Size) / (Estimated Present Value) |
|
|
Term
|
Definition
| (Ownership Requirement at Exit) / (1 – Future Dilution) |
|
|
Term
|
Definition
| Post Money Valuation – Size of Investment |
|
|
Term
| Share Price (before option pool) |
|
Definition
| (Pre-Money Valuation) / (Total Shares Before Option Pool) |
|
|
Term
| Revised Total Shares (after option pool) |
|
Definition
| Total Shares / (1 – Option Pool %) |
|
|
Term
| Revised Price per Share (after option pool) |
|
Definition
| (Pre-Money Valuation) / (Total Shares After Option Pool) |
|
|
Term
|
Definition
| Shares Owned x Share Price x Return Preference |
|
|
Term
|
Definition
| Investment x Dividend % x Number of Years Held |
|
|
Term
|
Definition
| Buyout – Return Preferences – Cumulative Dividends |
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|
