In my post Key terms in a termsheet Part 2 I covered the basics of anti-dilution. In that post I wrote:
Anti-dilution is a term which compensates the investor if there is a subsequent round of investment done at a lower share price, often called a down-round. The mechanism by which it works is a retrospective adjustment of the share price so that the investor gets more shares and it is as if they they had originally invested at a lower share price.
To read the full, original article click on this link: 50 Questions: What is anti-dilution/downround protection? « « The Equity KickerThe Equity Kicker
Author: Nic Brisbourne
