[wskinner]

Correct me if I'm wrong, but couldn't the preferred price stay flat, even with dilution? The company issues new shares and sells them at e.g. the current preferred price. Now there are more outstanding shares, and a higher post-money valuation, but a close to flat pre-money valuation. In this case the preferred price in real percentage of the company terms is higher since there are now more shares outstanding, but the price per share is flat.

I imagine the 409a (common stock price went down), but I don't think you can infer from this that the preferred price went down. The missing figure is how many shares were issued.

[cgb223]

Is there like a good blog post out there that can explain the difference between preferred and common stock, dilution, and all the other nuanced things about equity?

[jtmcmc]

yeah but all the employees probably have common stock not preferred so they are in fact getting screwed.