Anyone been founded by Kima15?

<p>Not a financial expert, but have been through three rounds of funding, so I'll give it a crack:</p>

<p>"The financing will be up to an aggregate of US$150,000 at a fully diluted pre­money valuation of US$850,000" - Post-money valuation is pre-money ($850k) + investment ($150k). In this case, your post-money valuation is $1M. 15% of $1M is $150k, their investment.</p>

<p>"including an unallocated employee share option plan (“ESOP”) of 5%" - Appears they are requiring that you set aside 5% to be used as options for future employees. They say "including", which would imply that it's part of the 15% they're purchasing. I'm not sure if that is accurate or not.</p>

<p>"The Investor will invest up to US$150,000 and would hold no less than 15% of the Company" - Looks like they may invest less, but still require no less than 15% of the company. That would mean that the company valuation would have to be lower. A bit suspect IMO.</p>

<p>"on a fully diluted basis." - Means that after any dilution occurs, they will still have 15%.</p>

<<“on a fully diluted basis.” – Means that after any dilution occurs, they will still have 15%.>>

Does this mean even after additional funding by VC, their stake on 15%?

<p>This is generally specific to the round at hand. There may be an anti-dilution clause elsewhere that would apply to future rounds.</p>

<p>Anti-dilution clauses are only as good as the investors you have in your round. If you go on to raise a series A and beyond, those institutional VC's may want to eliminate the previous anti-dilution, in which case, the seed round investor would have to comply. Reputable investors would never get in the way of preventing a portfolio company from raising the additional capital.</p>

*Meant: Does this mean even after additional funding by VC, their stake must remain 15%?

No, only after their round

thanks