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AFundraisingUpdated 2 Nov 2026

Anti-dilution provision

Clause protecting investors from equity value reduction in future funding rounds.

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.

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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.

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