So here's how the preference multiplier happens: when the company raises an equity round, you calculate the new share price, and the noteholders are assigned th

So here's how the preference multiplier happens: when the company raises an equity round, you calculate the new share price, and the noteholders are assigned the investment's worth of shares. However, because of the change in value, they would get more preferred shares per dollar invested than the new investors. So generally you get just the original price's worth of preferred and the rest is common.