Full ratchet anti-dilution is a form of anti-dilution protection for investors that adjusts the conversion price of a startup's convertible preferred stock into common stock in the event of a future down round of financing to reflect the lower price of shares issued in the down round. Full ratchet protection is considered to be very investor friendly and is much less common than other forms of anti-dilution protection.
Related Posts
-
Post Categories
- Startups
- Fundraising
The Ultimate Guide to Raising a Priced Round for Startups
Discover essential strategies for raising a priced round in our guide for startups. Learn how to avoid common pitfalls and secure the funding your company needs to scale.
