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.
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by bsmith@carofin.com | Jun 21, 2022
