Anti-Dilution Provision

Definicja

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).

Jak pojawia się w pozyskiwaniu finansowania

Nearly every priced venture round includes broad-based weighted average anti-dilution; full ratchet terms are a red flag founders should negotiate away.

Często zadawane pytania

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.

Wykorzystaj ten termin

Definicje wygrywają negocjacje tylko wtedy, gdy w nich uczestniczysz. Znajdź inwestorów, którzy finansują Twój etap i rozpocznij rozmowę.

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