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Forecast

Ratchet

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

JANUARY 12, 2010

In a bottom up approach, the forecast is built from actual user projections. A full ratchet anti-dilution clause is very unfriendly to entrepreneurs; it requires them to make up the entire difference in price from their own holdings. In a bottom up approach, the forecast is built from actual user projections.

Term Sheet

Term Sheet Valuation Dividend Liquidation Preference

Accepting Outside Investors? Here Are 5 Things to Watch Out for in Your Contract

Up and Running

MAY 21, 2015

The version of “anti-dilution protection” that most benefits outside investors is commonly called a “full ratchet.” As a middle ground on the “anti-dilution clause” you should be pushing for what’s called a “partial ratchet.” As the small business owner, the goal is just to understand how to negotiate the clause to serve you best.

Covenant

Covenant Liquidation Preference Ratchet Dilution

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Accepting Outside Investors? Here Are 5 Things to Watch Out for in Your Contract

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