Explore commonly used personal finance terms.
An anti-dilution provision protects investors from ownership dilution when new shares are issued, typically in venture capital or private equity investments. This clause adjusts the number of shares an investor holds to maintain or increase their percentage ownership if additional shares are issued at a lower price. Anti-dilution measures help investors protect the value of their investments, especially during later funding rounds, by preventing their equity from being devalued or diluted, thus preserving their initial investment value.
