Anti-dilution calculator
Enter a down round. Compare the new conversion price and the extra shares under broad-based weighted average, narrow-based weighted average, and full ratchet.
Calculator
Anti-dilution in a down round
The Series A paid $5.00 for each of its 2,000,000 shares. A new round sells shares at a lower price. Compare the protection methods.
- Conversion price
- $4.5833
- Was $5.00
- Converts into
- 2,181,818
- +181,818 shares
- Founders own
- 57.46%
- 58.33% with no protection
- Series A owns
- 17.91%
- New investors own 16.42%
Series A common shares after the round, by method
- No protection
- 2,000,000
- Broad-based
- 2,181,818
- Narrow-based
- 2,200,000
- Full ratchet
- 4,000,000
Ownership after the round: broad-based
- Founders
- Employee options
- Series A
- New investors
The new round raises $5M at $2.50, 50% of the Series A price. The weighted average moves the Series A price to $4.5833, only part of the way. The round issues 2,000,000 shares, compared with 10,000,000 before the round (all shares and options).
Here, full ratchet adds 2,000,000 shares and broad-based adds 181,818. Change the money raised: the broad-based number moves, but the ratchet number stays the same.