Glossary

Full Ratchet

A full ratchet anti-dilution provision, often referred to simply as a full ratchet, is a mechanism by which the ownership stake of an investor in a company is protected from being diluted by the issuance of additional shares in later rounds of financing.
This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.

People also read

Liquidation Preference
A term in preferred stock that specifies the order in which proceeds are distributed to shareholders in the event of a liquidation, dissolution, or sale of the company (i.e., when the company is sold or closed.)
Retail Market
A retail market is one in which goods or services are sold to consumers for consumption. In the financial world, it means the selling of securities to individual investors rather than institutional investors.
Debt Service Coverage Ratio
The debt service coverage ratio (DSCR) is a financial ratio that assesses a company’s ability to service its debt. If the company has sizable capital expenditures (CapEx), you can calculate DSCR after deducting capital expenses.

Get your legal covered so you can go back to doing business.

Discover how we can transform your startup today.
Get free legal support
Every month we share upcoming funding opportunities, events, startup news and legal tips in our free newsletter. Be the first to get the updates.
Sign up to our newsletter
We partner with the best startup organisations, accelerators, incubators and venture firms
© SuLe Hub Limited.
SuLe Hub is a registered trademark of SuLe Hub Limited.
Terms and ConditionsPrivacy PolicyRules of Acceptable UseCookie PolicyTerms of Engagement
Cookie Settings
By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage and assist in our marketing efforts. View our Cookie Policy for more information.
Accept All
Reject All
Cookie Settings
Cookie Settings
By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage and assist in our marketing efforts. View our Cookie Policy for more information.