Startup Investing

Weighted-Average Anti-Dilution

Definition

What is Weighted-Average Anti-Dilution?

An anti-dilution method adjusting conversion price based on both the lower price and number of new shares.

Example in practice

The protection is less severe than a full ratchet.

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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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