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 shareholding 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):

Pre-money valuation = (investment/equity stake) - 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)

Example:

Number of digital shares = (EUR 200.000 / EUR 60 ) = 3,333

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