Definition
A provision that adjusts an investor's ownership if future funding rounds happen at lower valuations. Basically a rich person's insurance policy.
Example Usage
Our Series A investor has broad-based weighted average antidilution, which means if we raise a down round, they won't be happy.
Origin
Corporate finance law, 1980s+
Fun Fact
Antidilution clauses can mathematically result in ownership exceeding 100%, which is the financial equivalent of perpetual motion.
Source: Venture capital term sheet terminology
Related Terms
Translate This Term
See “Antidilution Clause” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
Try the Translator