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Copy of SpiffyTerm, Inc.

Do not EDIT
by

Garri Vardanyan

on 7 March 2013

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Transcript of Copy of SpiffyTerm, Inc.

SpiffyTerm Valuations Possible Scenarios Possible Scenarios Team Members Garri Vardanyan

Cameron

Kevin

Abdullah

Antony Investors IPO $80,000,000

45% Discount Rate

4 years

Valuation = $18,097,474 Discount Rate 80 million when IPO

10.5 million Current Firm Value FV = 80,000,000

PV = 10,500,000

n = 4 years

PMT = 0 Discount Rate = 66.14% Alternative Valuations NPV = 18,097,475$ Founders:

Annabella Labella

Krishnuvara Ramakrishna

Bob Sledge

Seeking:

$ 4,000,000 1st Round financing

$ 2,000,000 2nd Round Financing


45% Discount Rate

IPO $ 80,000,000 After 4 Years SpiffyTerm, Inc. Contact Partner:

Wolf C. Flow


Offering:

$4,000,000


Price

$1/Share Vulture Venture Discount Rate:

66.14%

IPO Value: The Venture

Survive

Grow

$4,000,000 Investment


$4,000,000 in Exchange for Equity


Possibility of IPO in 4 years Base Assumptions Term Sheet Term Sheet Discount Rate 80 million when IPO

10.5 million Current Firm Value FV = 80,000,000

PV = 10,500,000

n = 4 years

PMT = 0 Discount Rate = 66.14% $1/share

Founders 5,000,000 shares

Option Pool 1,500,000 shares

Investors 4,000,000 shares

Post Financing Valuation = $10,500,000 Founders NPV = 18,097,475$ Alternative Valuation $80,000,000
-
$12,500,000

CF = $16,875,000

45% Discount Rate

NPV = $29,016,808 $80,000,000
-
$12,500,000

CF = $16,875,000

66.14% Discount Rate

NPV = $13,032,924 (4,000,000)

20,000,000

20,000,000

18,000,000

20,000,000

45%

NPV = $29,734,258 (4,000,000)

20,000,000

20,000,000

18,000,000

20,000,000

66.14%

NPV = $21,833,877 0 2 4 $3,000,000 Extra $1M Risk Discount Rate Venture Value (4,000,000)

20,000,000

20,000,000

17,000,000

20,000,000

45%

NPV = $29,400,000 (4,000,000)

20,000,000

20,000,000

17,000,000

20,000,000

66.14%

NPV = $21,600,000 $80,000,000

-

$13,500,000



CF = $16,630,000


45%


NPV = $28,600,000 $80,000,000

-

$13,500,000



CF = $16,630,000


66.14%


NPV = $21,800,000 0 2 4 $6,000,000 $6M Upfront Risk Discount Rate Venture Value Pro Con Time Value of Money


$6M Upfront Losing Option of


$2M Debt Financing
Full transcript