{"type":"video","version":"1.0","html":"<iframe src=\"https://www.loom.com/embed/98f4887284034a66a3fbbd43a0867929\" frameborder=\"0\" width=\"1838\" height=\"1378\" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>","height":1378,"width":1838,"provider_name":"Loom","provider_url":"https://www.loom.com","thumbnail_height":1378,"thumbnail_width":1838,"thumbnail_url":"https://cdn.loom.com/sessions/thumbnails/98f4887284034a66a3fbbd43a0867929-481ed47277dc9060.gif","duration":528.562,"title":"Weighted Average Anti-Dilution","description":"In this video, I walk through a challenging simulation of weighted average anti-dilution, comparing it to full ratchet anti-dilution. We analyze a seed round where the investor put in $5 million at a $2.14 conversion price, resulting in 25% ownership, and then a Series A down round where the new investment is $5 million, leading to a new conversion price of $1.49. I detail how the seed investor's shares change and the impact on the founders, who see a dilution of 33%. I encourage you to review the calculations and implications carefully, as understanding these concepts is crucial for navigating term sheet pitfalls."}