Anti Dilution Ratchets
Learn more about common financial terms here.
Need more help? Our team is ready.
Back to Glossary
Anti Dilution Ratchets
An anti-dilution ratchet is an aggressive form of anti-dilution protection that resets an investor’s conversion price to the price of a later, lower-priced round. A full ratchet offers the strongest protection, while weighted-average ratchets are more common and founder-friendly.