Answer to question 1:

For UnBlockAfrica

UnBlockAfrica has offered the best proposal to the customers because the price per share is very low as per the services they are offering. This company has three types of securities available and they Series A convertible preferred shares, Series A convertible note and Series A participating preferred shares among which the participating preferred shares was the most profitable proposal for the company as well as for the investors. For every series the company is offering the same rate of per share price.

• Equity: here also term sheet 3 will be best suitable which is series A participating preferred shares. Per share price is similar like other terms. Here also the capital structure will consists 45% of the existing shareholders. This ratio will not provide full control I the hands of shareholders so that operation of the company goes without the intervention of shareholder’s opinion. The capital structure includes employee stock option share up to 10% and rest of the portion is dived into 30% for VC1 and 15% for VC2. This ensures the ownership of the company stays with the original executives and it is not totally provided in any others hand.
• Size of stock option pool: 45% of the VC shares helps the company to use the amount in their relevant times. 1.5 times of the original share will be provided as liquidation, helps the company to grow and the shareholders to get more than their original price of shares.
• Dividends: 8% of the non-cumulative will help the company to utilize the extra amount for the betterment of themselves and pay more dividends to the existing shareholders later. Similar to other terms, here also the preferred stock will have standard broad-based weighted average anti-dilution rights. This anti-dilution right helps the company to engage the extra money they will earn in the next financial year in the betterment of the company so that existing shareholders of the company can earn more profit from the investment.
• Founder and employee vesting: every shareholder will be provided with one voting right. There will be five directors and three of them will be appointed by the shareholders as their representative in the board meeting. Each of the shareholders will have 2 years of vesting beginning.

In this company, term 3 will be more beneficial for them as well as for the shareholders too because if the company earn ore then the shareholders will also earn more and this will improve the market position for the company. The voting right provided to the preferred shareholders is 1 voting right and that is similar to every other company. Five directors will help the company to get a rational point of view on every decision the board makes.

Answer to question 2:

For UnBlockAfrica

From the investors, the syndicate investor that is Mr. Siyathemba Ndebele would be a perfect for one of the position in board of directors. He has 18 years of practical experience in finance industry and he has worked with many NGOs which will help him to take any decision for society’s betterment as well. Ndebele’s undergraduate degree in political science and social work will provide a theoretical as well as practical help to the company while any kind of complicated decision as how it will impact the society and the company together. It is important for every company to show some responsibility towards the society where they are working for profit. Ndebele is also completing his second undergraduate degree in finance which will definitely help the company to get advices over any finance related issues and queries. This will help UnBlockAfrica to improve their CSR activities and make relevant decisions. Among the three independent directors, Rachel Wu would be the best choice for UnBlokAfrica to choose as one of the board of directors because she has two undergraduate degrees along with a practical knowledge of the financial market. She was a co-founder of an application which reveals her innovative idea. This will be really helpful for UnBlockAfrica in introducing a new product in market. Rachel’s knowledge over the political science will also help the company get a better point of view over how a product will affect the political ground of the society and how political help can be gathered. Both Rachel and Ndebele have undergraduate degree in political science hence, the company can have a strong knowledge base over this matter and they will help the company to think for the customers and earn profit.