[Type text]
Emerging
Company
Finance
FNCE 480 - Final
Frank
Kurupacheril
[TRENDSETTER’S TWO ROADS]
Trendsetter, Inc – a warehouse and distribution solution software company for clothing retailers is faced with the usual dilemma. They are running out of seed money that the founders contributed. Now they have received two term sheets from prospective VC’s. The ball is in the founders’ court who have to choose one after weighing pros and the cons.
Contents
Introduction .................................................................................................................................................... 3
Basic valuation ................................................................................................................................................ 3
Liquidation ...................................................................................................................................................... 5
Dividends ........................................................................................................................................................ 9
Anti-dilution .................................................................................................................................................... 9
Vesting .......................................................................................................................................................... 11
Governance .................................................................................................................................................. 12
Questions and Answers ................................................................................................................................ 13
Emerging Company Finance FNCE 480 –TrendSetter, Inc |
2
Introduction
Trendsetter Inc was started by Wendy Borg and Jason Kushdog to deliver innovative warehouse and distribution management