Nominal Data

A reserved number of shares set aside for future issuance to employees, advisors, and other service providers as part of an equity incentive plan.

Put simply, a novation contract is drawn up when an agreement between two parties is altered by a third party taking the place of one of the original parties.

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.