Questions on Metapath Case

1a. Construct the share capitalisation table post Series E investment by RSC.

• Use Exhibit 12.2
• Assume $11.75m raised in Series E
• Breakdown by Class of Shares, $ investment, no of shares, % ownership
• Assume any Common Shares prior to any investment are owned by Management.

1b. What were the valuations pre- Series A, B, C, D, E?

2. Compare the values at exit for each class of shareholders; Common, Preferred A, B, C, D and Series E investors for Sale of company 1 year post Series E at exit valuations of $20m and $100m.

3. You represent Bessemer Ventures on the Board of Metapath. Which offer would you choose, RSC or Celltech? Explain your rationale.

4. Metapath encounters serious cash flow issues 6 years post Series E investment. Existing investors are tired and want to divest. The only offer was an additional investment of $40m at $20m pre with pay-to-play and 1x participating liquidation preference with the condition that management must stay on for at least 2 years. You are the CEO of Metapath, what would you do? How would you negotiate?

Attachment:- Case Study.rar