Definition
Anti-dilution provision is the clause protecting investors from equity value reduction in future funding rounds. It changes how a round is priced, who owns what, or whether an investor leans in. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Anti-dilution provision. Once they agree it means “Clause protecting investors from equity value reduction in future funding rounds”, the argument becomes a decision.
Common mistake
Using Anti-dilution provision as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Anti-takeover provision
Defensive measures implemented by companies to prevent hostile takeovers.
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Anti-trust
Laws and regulations preventing monopolistic practices and promoting competition.
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Convertible note
A short-term loan that converts into equity at a later priced round.
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Crowdfunding
Method of raising capital from a large number of people via online platforms.
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