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🌍 US & Europe · Cap table & fundingWeighted-average anti-dilution
Also called: weighted average anti-dilution
In one line
The common, milder anti-dilution method that adjusts an investor's price based on how big and how cheap the new round was.
In plain English
Instead of a full reset, weighted-average scales the protection to the size of the down round. It still dilutes common holders, but far less brutally than full ratchet.
If you were explaining it to a 5-year-old
The early friend gets some extra toys if prices drop — but a fair amount based on how big the price cut was, not a grab of everything.
Why it matters when you sell
It's the standard you'll usually see, and it still reduces your common value in a down round, just more gently.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
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