Publications
Publications
- July 2004 (Revised September 2004)
- HBS Case Collection
Note on Antidilution Provisions: Typology and a Numerical Example
Abstract
Antidilution provisions are an important element of most financings offered to entrepreneurs by venture capitalists and business angels. Yet few entrepreneurs are familiar with the different types of antidilution provisions and their mechanics. Compares the three most common scenarios for a financing round: no antidilution protection, weighted-average antidilution protection, and full-ratchet antidilution protection. Discusses the nature of antidilution provisions and provides a numerical example.
Keywords
Citation
Kuemmerle, Walter. "Note on Antidilution Provisions: Typology and a Numerical Example." Harvard Business School Background Note 805-024, July 2004. (Revised September 2004.)