tech

function my_exit_payout(…)

/* aggregate_options_strike_price = your options strike price per share * number of shares you own
company sale price is 1) if private transaction: amount paid by acquirer plus any funds in startup returned to investors,  2) if IPO = market capitalization.
note: if you assume all financings were 1x preferred, investor preferences == total amount of money the company has raised
to do:  add condition for participating preferred, graph various scenarios

*/

function my_exit_payout(  company_sale_price, your_percent_ownership, your_aggregate_options_strike_price, investor_preferences, investors_ownership_percent)
{

if (investors_ownership_percent * company_sale_price < investor_preferences) investor_converts=FALSE;
else investor_converts=TRUE;

if (investor_converts) return your_percent_ownership * company_sale_price – your_aggregate_options_strike_price;
else {
common_stock_proceeds = company_sale_price – investors_preferences.
your_percent_common = your_percent_ownership / ( 1 – investor_ownership_percent );
return common_stock_proceeds * your_percent_common – your_aggregate_options_strike_price;
}

}

Categories: tech

2 replies »

  1. Good info

    I have a great interest in computer and aircrafts, especially military aircrafts. I am planning to do computer engineering and be involved in the designing of military aircrafts (aircraft’s computer).. I need to know whether the US Air Force needs com…

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