[jartelt]

Some reports put the post-money valuation after the Series C at $700M. For this round, the pre-money is reported to be $865M and post-money is $1.4B.

If I had a 1% stake in DoorDash after the Series C, it was worth $7M ($700M * 1%). Assuming all the Series D round was new shares issued (we don't know the details), my stake in DoorDash would be diluted from 1% to 0.62% after the Series D (1% * $865M/$1.4B). However, the value of my stake would have grown from $7M to $8.68M (0.62% * $1.4B) because the valuation went up.

This obviously ignores things like value of preferred vs common stock. But, it is not straightforward to say everyone's stakes were diluted by 60% and it's bad. They were diluted, but the value of their holdings theoretically went up.

[spookthesunset]

This is something a lot of the "all dilution is bad" commenters don't seem to understand. Dilution isn't automatically bad. What matters is the total dollar value of your stake in the company. Did it go up or down? What percentage of the pie you hold isn't really relevant.

[hkmurakami]

The main takeaway imo is that door dash did not have the metrics to command a favorable valuation. The funding terms inform us of the immediate prospects of the company.