Dear, I cannot understand the dilution effect after multi-round financing.
For example,
of share for founder: 1mil.
Fraction of P/E on 1st round: 38%
of Share of P/E on 1st round: 612,903
and, fraction of P/E on 2nd round: 8.45%
of share of P/E on 2nd round: 148,870
–> then, I think that total fraction after 2nd round would (612,903+148,870)/(1mil.+612,903+148,870)=43.2%
But, the answer was 34.79%; 38%*(1-8.45%)
Please leaveprecious comments for me!
Thanks alot 