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Finance

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If you were Rose or Wise, which funding offer would you pick? Techstars or Founder.org? What are the advantages and disadvantages of each offer? Explain your decision. Techstars Stock Purchase Offer Financing Amount Common Stock $18,000 6% Techstars Optional Convertible Note Principal Amount $100.000 Interest rate 5% per year Duration of the note 12 months Qualified Financing of Conversion trigger at least $250.000 Discount 20% Cap Price/Valuation Cap $3,000,000 Board Seats 0 Source Company documents Exhibit 6b Founder.org Offer Terms, May 2015 Founder.org Convertible Note Principal Amount Interest rate Duration of the note Conversion trigger Discount when converting Cap Price/Valuation Cap Board Seats $300.000 5% per year 12 months Qualified Financing of at least $1,000,000 25% $3,000,000 0 If you were Rose or Wise, which funding offer would you pick? Techstars or Founder.org? What are the advantages and disadvantages of each offer? Explain your decision. Techstars Stock Purchase Offer Financing Amount Common Stock $18,000 6% Techstars Optional Convertible Note Principal Amount $100.000 Interest rate 5% per year Duration of the note 12 months Qualified Financing of Conversion trigger at least $250.000 Discount 20% Cap Price/Valuation Cap $3,000,000 Board Seats 0 Source Company documents Exhibit 6b Founder.org Offer Terms, May 2015 Founder.org Convertible Note Principal Amount Interest rate Duration of the note Conversion trigger Discount when converting Cap Price/Valuation Cap Board Seats $300.000 5% per year 12 months Qualified Financing of at least $1,000,000 25% $3,000,000 0

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