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.
Preparatory supply or clause
- clauseProvision in agreement
- protectionGuarding against harm
- investorOne who allocates capital
- financingProviding capital for purchases
startup · equity · valuation · conversion · ratchet · shareholding · fundraising · VC
Covering many areas
- resetRestore to original state
- formulaFixed method or notation
- adjustmentAlteration to improve fit
- calculationMathematical problem-solving process
exercise · repricing · downside · protection · threshold · trigger · floor · cap
Equity owner in corporation
- rightsJustified claims to freedoms
- adjustmentAlteration to improve fit
- mergerCorporate combination
- acquisitionAct of obtaining something
issuance · preemptive · subscription · statutory · charter · bylaw · warrant · convertible
provision
Preparatory supply or clause
- clauseProvision in agreement
- protectionGuarding against harm
- investorOne who allocates capital
financing · startup · equity · valuation · conversion · ratchet · shareholding · fundraising · VC · ownership
broad-based
Covering many areas
- resetRestore to original state
- formulaFixed method or notation
- adjustmentAlteration to improve fit
calculation · exercise · repricing · downside · protection · threshold · trigger · floor · cap · proportional
shareholder
Equity owner in corporation
- rightsJustified claims to freedoms
- adjustmentAlteration to improve fit
- mergerCorporate combination
acquisition · issuance · preemptive · subscription · statutory · charter · bylaw · warrant · convertible · securities