A fantastic overview, straight from the horse’s mouth:
Super-useful for those that are raising venture capital and despite the fact that I’ve done this a handful of times I still manage to learn a thing (or two) every single time.
If this type of thing confuses you then don’t be discouraged, even if the math isn’t very complex! There’s a lot of things to consider when giving parts of your company away to investors and employees and this is just one of a million other things that you have to work on.
You’ll be fine.