anti-dilution

Ownership percentage safeguard

Anti-dilution refers to provisions that protect an investor's ownership percentage from being reduced when a company issues new shares.

Common in venture capital and startup financing, these clauses ensure early investors maintain their stake or receive compensation when later funding rounds occur at lower valuations: The anti-dilution clause kicked in when the Series B was priced below our entry point.

venture-capital

provision

Preparatory supply or clause

financing · startup · equity · valuation · conversion · ratchet · shareholding · fundraising · VC · ownership

ratchet-mechanism

broad-based

Covering many areas

calculation · exercise · repricing · downside · protection · threshold · trigger · floor · cap · proportional

corporate-law

shareholder

Equity owner in corporation

acquisition · issuance · preemptive · subscription · statutory · charter · bylaw · warrant · convertible · securities

Opposites
shareholder protection mechanisms

anti-dilutiondilution

Reduction in concentration

Family

anti, dilution, dilute, diluted, diluting, dilutes, undiluted

Familiarity
Top 1,000,000
Profile
Used worldwide · Timeless · Abstract · Rated G