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 |