Anti-Dilution Provision
定義
An anti-dilution provision protects investors if a company later issues shares at a lower price, by adjusting the earlier investors’ conversion price downward. The two main types are weighted average (standard) and full ratchet (aggressive).
資金調達における位置づけ
Nearly every priced venture round includes broad-based weighted average anti-dilution; full ratchet terms are a red flag founders should negotiate away.
よくある質問
What is the difference between weighted average and full ratchet?
Weighted average adjusts the price partially based on the size of the down round; full ratchet resets it entirely to the new lower price, hitting founders much harder.
When does anti-dilution trigger?
Only in a down round, when new shares are issued below the price earlier investors paid.