All News

We are committed to staying up to date with the legal developments in all the sectors that we work in and our lawyers provide regular insight and commentary on developments across South Africa and Kenya’s legal landscapes.

12 February 2025 Article

Ratchets: The most important anti-dilution tool in your investment toolbox

Venture capital and private equity investors’ strategy is to find companies, invest early and grow their investments as the investee company grows. However, this investment strategy is risky, because new, untested companies often struggle as they venture into the unknown. This frequently results in these companies raising additional funding down the line. One way for investors to protect their investment is through “ anti-dilution ” provisions, which aim to prevent investors from excessive dilution in future funding rounds and particularly in instances where fresh shares are issued at a lower price than the subscription price paid by existing investors, commonly known as a ‘down round’.

Corporate & Commercial Law4 min read

No results

We are committed to staying up to date with the legal developments in all the sectors that we work in and our lawyers provide regular insight and commentary on developments across South Africa and Kenya’s legal landscapes.