> This shows a lack of understanding of the structure of late stage VC deals. These are convertible notes, not straight equity. Capital structure doesn't chang

> This shows a lack of understanding of the structure of late stage VC deals. These are convertible notes, not straight equity. Capital structure doesn't change the enterprise value of a company. Call it equity, venture debt, mezzanine, super-duper late series H, etc. Enterprise value is what is. The capital structure can be 100% equity, it can be 99% debt and 1% equity, but valuation, which is what the article talks about refers to a $2bn to $10bn change in value. I think you should check some corporate finance theory[0], it might help clarify things. [0] https://en.wikipedia.org/wiki/Modigliani%E2%80%93Miller_theorem https://en.wikipedia.org/wiki/Modigliani%E2%80%93Miller_theo...