Price and quantity
In order to sell Digital Company Shares you have to define how many units you want so sell and for which price. For our example we assume the following data:
Explanation | Value | Naming in the example |
Investors' share of the new share capital | 10% | equity stake |
Total investments | EUR 200.000 | investment |
Paid-in share capital of your company | EUR 30.000 | share capital |
How many shares correspond to € 1 of the share capital? | 1 | calculation factor |
With this information, you can now calculate the number of pieces of digital company shares and the price per share. As described above, we first assume that 1 piece of the digital company share has the economic value of EUR 1 of the share capital.
The first step is the calculation of the pre-money valuation (value of the company before the investment):
Example:
Pre-money valuation = (EUR 200,000 / 0.1 ) - EUR 200,000 = EUR 2,000,000 - EUR 200,000 = EUR 1,800,000
Now we calculate the value per EUR 1 of the share capital:
Share price = Pre-money valuation / share capital.
Example:
Share price = EUR 1.800.000 / 30.000 = EUR 60
With this information, we can now calculate the number of digital company shares that need to be issued:
Number of digital shares = (investment / share price)
This is how the result of the round looks compared to before the round:
Description | Before funding round | After funding round |
Share capital (commercial register) | EUR 30,000 | EUR 30,000 |
Share capital (economic) | EUR 30,000 | EUR 33,333 |
Valuation | EUR 1,800,000 | EUR 2,000,000 |
Investor share in % | 0,00 % | 10,00 % |
Investor share | EUR 0 | EUR 3,333 |
