Definition
A Non-Dilution Provision is a clause in an investment agreement that protects an investor from equity dilution in future financing rounds.
Usage and Context
Non-dilution provisions ensure that an investor`s ownership percentage in a company is maintained, even when new shares are issued in future financing rounds.
Frequently asked questions
What does no dilution mean? No dilution means that an investor`s ownership percentage in a company remains unchanged, even when new shares are issued.

What is the difference between dilution and nondilution shares? Dilution shares are subject to a reduction in ownership percentage when new shares are issued, while non-dilution shares are protected from this reduction.

Why are anti-dilution provisions important? Anti-dilution provisions are important because they protect investors` ownership interests and ensure that their investment value is not diminished by future share issuances.
Related Software
Benefits
Non-dilution provisions protect investor interests, maintain ownership percentages, and ensure investment value is preserved in future financing rounds.
Conclusion
Non-dilution provisions are crucial for protecting investors from equity dilution, ensuring their ownership stakes and investment values remain intact during future financings.
cta
Connect with the world’s top investors to raise capital for yourStart free trial