Startup Investing

Full-Ratchet Anti-Dilution

Definition

What is Full-Ratchet Anti-Dilution?

An anti-dilution method resetting the conversion price to the new lower issue price.

Example in practice

A small down round substantially increases the investor's conversion entitlement.

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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