Definition
What is anti-dilution protection?
Anti-dilution protection adjusts an investor's conversion price if the company later raises money at a lower valuation, so they receive more shares and are partly protected from a down round.
Broad-based weighted-average anti-dilution is the common, founder-friendlier form. Full ratchet resets the price entirely to the new lower price and can heavily dilute founders.
General information, not legal, tax or investment advice.