Effect of a second round, What is the effect of a second round of financing on the, Finance Basics

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Effect of a second round

Please answer the following question:

Question 1: What is the effect of a second round of financing on the ownership percentages of the founders and the initial first-round investors?

Question 2: How and why does the first-round investors' ownership percentage change between rounds 1 and 2?

Question 3: How and why does the founder's ownership percentage change between rounds 1 and 2?

Note: Explain all steps comprehensively.

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Finance Basics: Effect of a second round

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Finance Basics: Effect of a second round

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