Suppose that EBV makes a $6M Series A investment in Newco for 1M shares at $6 per share. One year later, Newco has fallen on hard times and receives a $10M Series B financing from Talltree for 2M shares at $5 per share. The founders and the stock pool have claims on 3M shares of common stock.

Consider the following cases: Case I: Series A has no anti-dilution protection. Case II: Series A has full ratchet anti-dilution protection.

For each of these cases, what percentage of Newco (fully diluted) would be controlled by EBV following the Series B investment? What would be the post-money and pre-money valuations?