What is post money valuation, post-money price/share, and post-money share count for Davina and Kleiner Perkins?

Part 1
6-Guys Burger company was founded by Davina Parker (capitalized with $10,000) and an initial count of 1,000,000 shares. Davina sought out an investor for the buildout of her first store ($400k for the buildout and $100k for working capital, inventories etc). Kleiner Perkins, a silicon-valley VC firm, was looking to invest in an all-American food concept. They loved Davina’s concept of an always-fresh meal of burger, fries and a milkshake, and agreed to invest $500,000 for 20% stake in Davina’s 6-Guys Burger company. As an investor, they negotiated preferred shares including a full-ratchet anti-dilution clause.
What is post money valuation, post-money price/share, and post-money share count for Davina and Kleiner Perkins? Your response will be in the following format:


Post-money
•Post money valuation =
•Davina % ownership is diluted from xxxxx% to xxxxx%
•Post-money total share count =
•Kleiner Perkins investor share count=
•Davina Parker share count =
•Post money share price =
Part 2
Following the VC-firm Kleiner Perkins initial investment, Davina completed the restaurant buildout and began operating 6-Guys Burger Company. Within 14 months of opening, Davina and her team ran the 6-Guys Burger Company successfully with stellar growth in weekly AUV (average unit volume per store) > $40,000, and average ticket > $29. Keeping in mind the new outstanding share count (including both Founder Davina and Investor Kleiner Perkins), 6-Guys Burger Company is seeking a new priced round of investment for a minimum of $400,000 (capital for buildout). Although, $400k would be good for the capital buildout, another $100k for marketing would be perfect and would help her advertise 6-Guys Burger across current and future target markets/locations).
Armed with her pitch deck and her stellar AUV and growth rates, she met with 7 VCs/Angels within 2 months. Davina got three Series A termsheet investment offers, as follows:
•Group 1 investor has offered $500,000 for 20% of company
•Group 2 investor has offered $400,000 for 15% of company
•Group 3 investor has offered $400,000 for 12% of company
You are going to help Davina decide on which is the best deal for 6-Guys Burger. For this, you will need to first assess financials of each groups’ term sheet/offer, by calculating the following:
•Post-money val
•Pre-money val
•Post-money share count for each of the stakeholders (Davina, Group investor, Kleiner Perkins)
•Share price
•Value of Ownership stake for each of Founder Davina, Group investor and Kleiner Perkins
.
For Part 1 and 2, I recommend that you re-purpose the cap-table excel spreadsheet from Assignment #5B to show the above calculations.
Part 3:
Part 3A:
Based on your responses to Part 2, which investor group should Davina/6-Guys Burger Company do the deal with – Group 1, Group 2 or Group 3? Why? There is not a single answer – your rationale is more important.
Part 3B:
Based on your responses to Part 2, which investor group would VC-firm Kleiner Perkins prefer? Group 1, Group 2 or Group 3? Why? There is not a single answer – your rationale is more important.
As you formulate your response, think about this:
Both Kleiner-Perkins and Davina recognize the need for extra capital infusion for this next phase of growth for 6-Guys Burger Company.
Kleiner Perkins has full ratchet anti-dilution rights to exercise over any deal that Davina wants to pursue, especially if any new investor capital infusion results in dilution (and even a down-round) their first-in investment.
.
Part 4:
If Kleiner Perkins were to exercise the full-ratchet anti-dilution clause (if applicable), how many shares would KP get from Davina as a result of KP dilution. Calculate this for each offer, Group 1, Group 2 and Group 3, as applicable. So in this you will identify Group #, Kleiner-Perkins $loss/gain, Price per share, Full ratchet shares transfer from Davina for the Kleiner-Perkins loss.
Part 5: Bonus and completely optional: This is a sample Q – just looking for feedback on this:
Kleiner Perkins really likes 6-Guys Burger Company concept, Davina and her founding team, 6-Guys Burger Company future prospects, and want to retain their shares % ownership of 20%, even if it’s a down round.
How many more shares should Kleiner Perkins buy to maintain their pro-rata share of 20% in the company? You will provide this answer for each of the 3 Group offers, that result in a down round for KP. So here you will provide Group #, KP ownership%, Additional investment needed (# shares, price/share) to maintain 20% ownership. Assume that KP will not exercise its full-ratchet anti-dilution for this scenario.
What will the new cap table look like under this scenario?

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