BONUS: 3. How do things change if there is weighted average dilution protection (i.e., old investors...

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BONUS: 3. How do things change if there is weighted average dilution protection (i.e., old investors receive additional shares-free-to lower their effective price paid per share). A typical formula for calculating the price adjustments using weighted average dilution protection is: NCP= [(OB*OCP) + New$] / OA where: NCP New Conversion Price for Series A Investment OB = Outstanding Shares Before Offering OCP = Old Conversion Price New$ Amount Raised in Offering OA = Outstanding Shares After Offering Note: Outstanding Shares After Offering [OA] is itself a function of the New Conversion Price [NCP] in that a lower NCP will result in additional shares being issued to holders of this anti-dilution protection, thus increasing OA and driving an even lower NCP. This circular reference will be difficult to model in Excel. BONUS: 3. How do things change if there is weighted average dilution protection (i.e., old investors receive additional shares-free-to lower their effective price paid per share). A typical formula for calculating the price adjustments using weighted average dilution protection is: NCP= [(OB*OCP) + New$] / OA where: NCP New Conversion Price for Series A Investment OB = Outstanding Shares Before Offering OCP = Old Conversion Price New$ Amount Raised in Offering OA = Outstanding Shares After Offering Note: Outstanding Shares After Offering [OA] is itself a function of the New Conversion Price [NCP] in that a lower NCP will result in additional shares being issued to holders of this anti-dilution protection, thus increasing OA and driving an even lower NCP. This circular reference will be difficult to model in Excel.