Startup Investing

Anti-Dilution Protection

Definition

What is Anti-Dilution Protection?

A provision adjusting conversion terms when a company later issues shares at a lower price.

Example in practice

A down round increases the number of ordinary shares received on conversion.

Keep learning

A preliminary document outlining the main commercial terms of a proposed investment.

A company's agreed value immediately before a new investment.

A company's value immediately after adding new investment capital.

The rate at which a company spends cash, commonly measured monthly.

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