March 19, 2024

Anti-Dilution protection in investments 101

In a situation where you invest directly into a company and the company later on issues new shares at a price that is lower per share than the price you paid, the consequence could be that you are diluted both as regards your economic rights and as regards your control rights in the company. To protect against this, the seasoned investor will often request an anti-dilution clause as part of the investment agreement – especially in times when valuations are

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