A security term designed to protect the percentage ownership of Investors when there is subsequent issuance of equity at a lower price (also know as a “down round”). For example, if subsequent Investors will receive a 20% ownership in the business for a lower share price the earlier Investors having anti-dilution protection, the earlier Investor’s dilution from this additional equity issuance would be less than a 20%. Relates to equity.
« Back to Glossary IndexFull-Ratchet Dilution Protection
by [email protected] | Jun 21, 2022
