This post includes some geeky accounting issues, but read it. It can change how much dilution you take in the next round.

Later-stage investors are delivering our companies attractive valuations. Just look at the latest Unicorn list.

However, many companies are not really getting the headline valuation in their term sheet. Ultimate ownership and dilution is driven by pre-money share price, not a headline valuation. When follow-on investors are calculating share price, many use an outdated method that is adding dilution to existing shareholders, most often hurting founders and employees.

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