In venture capital, an investor protection provision which specifies that options and convertible securities may be exercised relative to the lowest price at which securities were issued since the issuance of the option or convertible security. The full ratchet guarantee prevents dilution, since the proportionate ownership would stay the same as when the investment was initially made.
Related information about full ratchet:
- Full Ratchet Definition | Investopedia
An anti-dilution provision that, for any shares of common stock sold by a company after the issuing of an option (or convertible security), applies the lowest sale ...
- What is full ratchet anti-dilution protection? : Startup Company Lawyer
Aug 4, 2007 ... Under the full ratchet formula, this same result is obtained whether the company raises $100,000 at a price of $0.50 per share or raises ...
- VCHub.com | Anti Dilution – Full Ratchet
The most punitive anti dilution provision is a Full Ratchet. ... The complexity around a full ratchet is based on the adjustment of the price while keeping the ...
- Just Say No: VC terms that can really hurt - Venture Hacks
Dec 2, 2009 ... Now we own you: Full ratchet anti-dilution ... Note that there is usually a shared responsibility in full-ratchet: the entrepreneur is obsessed with ...
- What is full ratchet? definition and meaning
Definition of full ratchet: In venture capital, an investor protection provision which specifies that options and convertible securities may be exercised relative to the ...
- Full Ratchet Anti-Dilution Protection - Andrew.cmu.edu - Carnegie ...
Full Ratchet Anti-Dilution Protection. Fasten your seat belt. By Frank Demmler. In last week's article, we discussed how the word “dilution” has several meanings ...
- Full Ratchet - Financial Dictionary - The Free Dictionary
The option for existing shareholders in some publicly-traded companies to exchange their shares for more shares in a new issue of stock where the newly ...
- Further demystifying the VC term sheet | VentureBeat
Feb 14, 2011 ... Full Ratchet. A full ratchet antidilution adjustment is draconian to the founders ( and other holders of the Company's common stock) and thus is ...