- Owner 1: 500k shares (50%)
- Owner 2: 500k shares (50%)
Round 1 (Company raises a $5 million Series A round at $20m post-money)
- Owner 1: 500k shares (37.5%)
- Owner 2: 500k shares (37.5%)
- Investor 1: 333,333 shares (25%)
Round 2 (Company raises $10 million Series B round at $100m post-money)
When there is a second Investor, and lets say he gets 10% for his investment. How does dilution work for the two owners and the first investor? How do you determine the number of new shares issued?