Glossary · Ownership
Anti-dilution protection
Clauses that give investors extra shares if a future round prices the company lower than their round — protecting them from a “down round.” Founders and employees often feel more dilution when these trigger.
Related: Down round · Dilution · Preferred stock
A bit more nuance▾
- Broad-based weighted average is milder than a full ratchet.
- These terms signal how parties expect downside risk to be shared.
Go deeper▾
Discussion questions▾
- Who should eat downside if the market turns — investors, founders, or both?
- What is a fair middle ground in your ecosystem’s norms?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.