full ratchet

noun

An antidilution approach by which, if a subsequent round of funding would decrease an investor's equity ownership percentage, the investor is given additional shares to maintain the former percentage.

Ask AI about this wordChatGPTClaudePerplexityGoogle AIGrok

Meanings

nounfull ratchet (plural full ratchets)

plural full ratchets

  1. businessAn antidilution approach by which, if a subsequent round of funding would decrease an investor's equity ownership percentage, the investor is given additional shares to maintain the former percentage.
Cite this entry
APA

full ratchet. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/full%20ratchet

MLA

“full ratchet.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/full%20ratchet. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “full ratchet,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/full%20ratchet.

Source: full ratchet on Wiktionary, CC BY-SA 4.0.