Environmental Scan

A protective provision for investors that adjusts their equity ownership percentage in the event of a future funding round at a lower valuation, ensuring their stake is not reduced unfairly. Anti-dilution provisions can come in various forms, such as full ratchet or weighted average adjustments.

Sale and purchase agreements (SPAs) are legally binding contracts that detail conditions that must be met by the buyer and seller. They help to ensure a smooth purchase process and work to protect all parties.

A contract between shareholders that establishes their rights and obligations and sets out the rules for managing the company.