The round I invested in was at a $[X]M post-money valuation, and the new round I saw is at a $2[X]M pre-money valuation. Why does my dashboard show less than a 2x increase in value?

Our valuations are generally based on the price per share paid in a round. This is because you can't accurately assess the change in value of a position based solely on the post and the pre-$ valuations.

To illustrate:

Series A

PPS = Post-$ Valuation / Post-$ Fully Diluted Capitalization

Series B

PPS = Pre-$ Valuation / Pre-$ Money Fully-Diluted Capitalization

If the Series A Post-$ fully diluted was the same as the Series B pre-$ fully diluted, then you could simply divide the Series A Post-$ by the Series B Pre-$ to get the increase in valuation. But they almost never are the same. Here are a couple of reasons why:

• The Series B pre-$ fully diluted typically includes a 10-20% post-$ available stock plan. This is mostly due to convention.

• The pre-$ fully diluted will often include convertible notes or SAFEs issued in between the two rounds.

• If additional Series A shares were sold in the interim, or the company increased the existing stock plan in the interim, the Series B pre-$ fully diluted would be bigger.

The value of your position will also be affected by carried interest and any fees paid in connection with the investment.

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