Suppose that EBV makes a $6m Series A investment in Newco for 1m shares at $6 per share. One year later, Newco has fallen on hard times, and receives a $6m Series B financing from Talltree for 6m shares at $1 per share. The founders and the stock pool have claims on 3m shares of common stock.
Following the Series B investment, what percentage of Newco (fully diluted) would be controlled by EBV? Consider the following cases:
a) Series A has no anti-dilution protection
b) Series A has full-rachet anti-dilution protection
c) Series A has round-based weighted-average anti-dilution protection
d) Series A has percentage based anti-dilution protection in which the faction of the firm owned by EBV remains constant.