video1.0<iframe src="https://www.loom.com/embed/98f4887284034a66a3fbbd43a0867929" frameborder="0" width="1838" height="1378" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>13781838Loomhttps://www.loom.com13781838https://cdn.loom.com/sessions/thumbnails/98f4887284034a66a3fbbd43a0867929-481ed47277dc9060.gif528.562In 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.