Anti-Dilution Provisions

Anti-dilution provisions protect investors from dilution of their ownership percentage. They adjust the conversion rate of convertible securities to compensate for issuance of additional shares at a lower price.

Key Takeaways

  • Protects investors from ownership dilution.
  • Adjusts conversion rates for convertible securities.
  • Compensates for new shares issued at lower prices.
  • Common in venture capital agreements.

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