Venture Deals · glossary
A protection for a preference class when the company later sells shares at a lower price. It lowers the class’s conversion price, so each share will convert into more ordinary shares. It issues no shares on the day. Article 7 · Chapter 13
Explained in Chapter 13, The Down Round: Anti-Dilution and Pay-to-Play, of Venture Deals.
Anti-dilution protection does not stop dilution. It compensates a preference holder that paid more than the new price. It does this by lowering the class's conversion price, the price at which each preference share turns into ordinary shares. The same preference share then converts into more ordinary shares.Read Chapter 13, The Down Round: Anti-Dilution and Pay-to-Play →
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