This bit of (excellent) guidance is actually two somewhat separate suggestions: "Founders should insist that their lawyers publish, to them and the angel/seed

This bit of (excellent) guidance is actually two somewhat separate suggestions: "Founders should insist that their lawyers publish, to them and the angel/seed investors, a “pro-forma” cap table at the closing of the note that shows how much of the company each of them would own if the note converted immediately at different prices. This “pro-forma” cap table should be updated each and every time another note is isssued. Most importantly, we cannot and should not continue to allow founders to issue notes to investors and not understand how much dilution they are taking on each time they do it." Requiring that a cap-table be published is somewhat different than ensuring that the founders understand their dilution. It's quite likely there is a ton of overwhelming information/events going on during a close, and it's easy (though it shouldn't be) at this stage for a founders eyes to glaze over yet another-table. But taking the extra 60 minutes to walk through the implications of dilution, and ensuring that they actually get it is something a responsible investor/VC will do.