1.

Techstars and Y Combinator have laid down a good foundation for themselves as two of the main players in the biological system of startup financing.
Customary funding firms may not generally have the option to give subsidizing and mentorship to business visionaries in the beginning phases of
their organizations, however, these organizations do. These sorts of projects can be of huge help to youngsters simply starting their vocations as
entrepreneurs in getting their organizations going.

2. Rose and Wise chose the Techstars offer and the optional convertible note described in Exhibit 6a. Rose and Wise choose the Founder.org offer
described in case Exhibit 6b. In both scenarios, you can assume the following: -founders currently own 10 million shares of common stock -there is
currently no option pool -all three unpriced convertible notes described in Exhibit 5 have a 20% discount and a valuation cap of $3 million -after
receiving either offer, the company will secure a Series A round of $2 million at a $10 million post-money valuation -the Series A investors will
require that the option pool equal 10% of shares on a fully diluted basis immediately after the Series A round is closed.

3. Accepting the offer from Founder.org of $300,000 in convertible notes would be the smartest decision for Lovepop in its current state. Rose and Wise
have had great opportunities to develop and gain exposure for Lovepop through channels such as the Venture Incubation Program and the Rock
Accelerator. The scalability of Lovepop, proven retail figures at kiosks, and the current plan for six additional kiosks around the US helped us land the
decision to pass up the opportunity to fill Techstar’s cohort opening and leverage Founder.org’s investment to leverage fast expansion. In the steadily
declining market of greeting cards, it would be best to make a definite entry as soon as possible to hopefully grab consumer awareness and hopefully
market share. The unique quality of Lovepop gives the company an edge as they will be competing with greeting card giants such as Hallmark and
American Greetings Corporation. Although there is no mentorship program involved with Founder.org’s deal, there is also no cash exchange for
equity which plays into Lovepop’s current cash flow issue. With some dependency on the automatic conversion, this is a less dilutive option for the
founders.