Hi Akshay — yes that’s correct. The calculations I modeled are based on the “pre-money” method of calculating share price. This is the most common method, but if you’re the VC, you might pressure the founders to use the percentage-ownership method, where you would hold fixed the percentage ownership the investor is purchasing and the founders would take all of the dilution.

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legal counsel to startups and VCs, jd-mba, former investor at Dorm Room Fund

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