Glossaria.net

Glossary Venture Capital / Term

Anti-dilution Clause

Contractual clause that protects an investor from having their investment as a percentage of ownership significantly reduced in subsequent rounds of fundraising. Technically the provision increases the number of shares of Common Stock issuable upon conversion of a convertible security or upon exercise of a warrant or option upon the occurrence of specified events, usually the issuance of more shares for a low price.

Permanent link Anti-dilution Clause - Creation date 2020-03-10


< Angel Investor Glossary / Venture Capital Antidilution provisions >