Anti-dilution provisions are investor protections triggered during a down-round, which occurs when a company raises capital at a lower valuation than its previous funding round. A full-ratchet provision is the most aggressive form of protection for investors. It mandates that if a company issues new shares at a price lower than what an investor previously paid, that investor's conversion price is reset entirely to the new, lower price. This effectively grants the investor as many additional shares as if they had invested at the new, lower valuation, regardless of how much....
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