1. After opening SampleFile1, change the date at the top of the screen (next to As of, you can siply use the arrow key with a year highlighted and arrow up two or three clicks)

a. Notice how capitalization, vested shares, payouts per shareholder and behaviors of each security and holder are instantly optmized taking into account thousands of variables.

2. After opening SampleFile1, look for "View" on the menu bar at the top of the screen. select "Exit Value Chart - % Prcoeed) and then change the date using the up or down arrow with a year highlighted. After each click, hit the tab key.

a. A simplified, graphic representation of how those complex relationships between round terms, capitalization and liquidatity interact is displayed. If you right click on any version of that chart, you can select "Copy" and then paste it into a document, spreadsheet, PowerPoint or Outlook email message.

3. From the main menu bar at the top of the screen, select "Tools" and then select "Reverse Solve Exit Values." Enter any value you wish (for instance, $1.57 per share payout for the common stock, or Series D preferred). You can leave the other default values in place for this exercise.

a. Now you can see that the Exit Value that matches your desired payout has been instantly generated, with each related liquidation preference, participation, conversion trigger, options vesting, warrant exercise (if in the money), warrant exclussion (if out of the money), and every other term taken into consideration when determining that Exit Value.

4. With the same View of Liquidation - Exit Value Payout Per Share, click on the Series D security in the right upper pane. You will notice that all terms for the Series D round display in the properties window to the right. Expand the "Exit Preferrences) item and change the liquidation preference multiple from 1X to 2X (just highlight the 1X and type 2).

a. That quickly each of the outcomes, payouts, multiples, IRRs, and decisions of each holder and security are adjusted to reflect the impact of that term.

5. Lastly, double click on the shareholder "Venture Capabilities" in the lower shareholder region to the left. Change the name to the name for one of your funds (for instance, MyFund Partners IV). Now do the same thing with any other holder (for instance, change Old Fort Partner IV to MyFund Partners III). Now go to "Tools" then select Shareholder Groups. Now click the New Groups button. Enter the first part of your funds name (for instance, MyFund).

a. Notice how the group is prepopulated with likely investors that are part of your fund group. You can accept or modify these and then have their returns, payouts and future participation in rounds modeled and displayed as an expandable group.

b. Similarly, if you click on that group (or any other holder or security) you can then select "Transaction Documents" from the right panel and click Add. A form will display to allow attaching documents related to that holder or security (such as a term sheet, a stock purchase agreement, a shareholder rights agreement, or even a business plan).

c. After attaching the documents, select "File" then Send by Email. You will see that you can include the new model you have created, along wiht related documents and send as a compressed Liquid Scenarios file. You can even encrypt and password protect the contents if you wish.