Dilution 稀釋
Dilution refers to the phenomenon of a shareholder’s ownership percentage in a company decreasing because of an increase in the number of outstanding shares, leaving the shareholder with a smaller piece of the corporate pie. The total number of outstanding shares can increase for any number of reasons, such as the issuance of new shares to raise equity capital or the exercise of stock options or warrants.
稀釋指公司股東持股比例下降的現象，是由于流通股數量的增加導致股東持有公司更少的份額。流通股總數量可由于任何原因增加，例如發行新股增加股本或行使股票期權或權證。
However, not all dilutive issuances are harmful to the existing shareholders.? If the company issues shares but receives sufficient cash in exchange for the shares, the shareholders’ ownership percentages may be reduced but the value of the company has increased enough to offset the lower ownership percentage.? On the other hand, if the cash received is insufficient, the increase in the value of the company will not be enough to offset the reduction in ownership percentages.
然而，并非所有的稀釋性發行都對現有股東利益造成損失。若公司發行股票但因股票交易獲得足夠的現金，股東的所有權比例可能下降但公司的價值增加以至于抵銷較低的所有權比例。另一方面，若公司獲得的現金不足，公司價值的增加就不足以抵銷股東所有權比例的下降。
In venture capital deals, the transaction documents typically include negotiated provisions designed to deal with a dilutive issuance that would otherwise reduce the value of the preferred investors’ shares (relative to the price the preferred investors paid for their shares).? These provisions are referred to as “anti-dilution provisions.”
在風險投資交易中，交易文件通常包括旨在處理稀釋性發行的協商條款，否則會降低優先股投資者股票的價值（相比較于優先股投資者為他們股票所支付的價格而言）。這些條款統稱為“反稀釋條款”。
Anti-dilution 反稀釋
In venture capital terms, dilution becomes a concern for preferred stockholders when confronted with a “down round” — a later issuance of stock at a price that is lower than the preferred issue price.? Anti-dilution provisions protect against a down round by adjusting the price at which the preferred stock converts into common stock.? We previously discussed the concept of the preferred stock being convertible into common here, noting that many of the preferences of the preferred stock are based on the number of shares of common into which the preferred converts (e.g., voting rights, dividend rights, liquidation).
在風險投資交易中，稀釋成為優先股股東面臨“下跌”時的一個擔憂－之后股票的發行價格低于優先發行的價格。反稀釋條款通過調整優先股轉換為普通股的價格從而防止下跌。我們之前討論過可轉換為普通股的優先股的概念，指出優先股的許多優先選擇權是基于優先股轉換的普通股的數量（例如表決權、股息分配權，清算等）。
There are three common alternatives for anti-dilution provisions described in the NVCA’s model term sheet: full ratchet, weighted average, and no price-based anti-dilution protection.
美國風險投資協會條款說明模版中描述的反稀釋規定主要有三種常見的選擇：棘輪條款、加權平均值、無價格基礎的反稀釋保護。
Full Ratchet棘輪條款
A “full ratchet” provision is the simplest type of anti-dilution provision but it is the most burdensome on the common stockholders and it can have significant negative effects on later stock issuances.? Full ratchet works by simply reducing the conversion price of the existing preferred to the price at which new shares are issued in a later round. So if the preferred investor bought in at $1.00 per share and a down round later occurs in which stock is issued at $0.50 per share, the preferred investor’s conversion price will convert to $0.50 per share.? This means each preferred share now converts into 2 common shares.
棘輪條款是最簡單的反稀釋條款但是對普通股股東而言是最難以負擔的，并且會對之后的股票發行產生重大負面影響。棘輪條款通過簡單地降低現存優先股的轉換價格為后一輪發行新股的價格。所有若優先股投資者以1美元每股價格買入股票在之后輪的融資中股票下跌為每股0.5美元。這意味著每個優先股現在轉換成兩個普通股。
Full ratchet is easy and it’s the most advantageous way to handle dilution from the preferred investor’s standpoint but it is the most risky for the holders of any common stock.? With this approach, the common stockholders bear all of the downside risk while both common and preferred share in the upside.
棘輪條款容易，最有利的優勢是站在優先股投資者的角度來處理稀釋問題，但是對普通股股東風險最大。通過這種方法，普通股股東承擔所有價格下跌的風險，而普通股與優先股同時處于上漲空間。
Full ratchet can also make later rounds more difficult.? If the company needs to issue a Series B round and the stock price has decreased, it may be difficult to get the Series A investors to participate because they are getting a full conversion price adjustment.? In essence, the Series A investors are getting more shares without putting more cash in the Series B round.? In addition, the full ratchet provision will reduce the amount the Series B investors will be willing to pay in a down round (simply because full ratchet results in more shares outstanding on an “as converted” basis).
棘輪條款也可能會使得后面的輪次更加困難。若公司需要發行B輪且股價已經下跌，A輪投資者很難參與，因為他們獲得全面的轉化價格調整。本質上，A輪投資者無需在B輪投入更多的現金就能獲得更多的股票。此外，棘輪條款將減少B輪投資者在下一輪降價融資中的出資（僅僅由于棘輪條款導致更多流通股處于“轉換”的基礎上）。
Weighted Average加權平均值
A second and more gentle method for handling dilution is referred to as the “weighted average” method. [1]? Following is the calculation for a typical weighted average anti-dilution provision presented by the NVCA’s term sheet (it looks a little intimidating at first glance but it’s actually pretty simple):
第二種更溫和的處理稀釋的方式稱為“加權平均值”方法。［1］以下是美國風險投資協會條款清單所顯示的典型的加權平均值反稀釋條款的計算（第一眼看上去有些嚇人，但實際上相當簡單）：
CP2 = CP1 * (A+B) / (A+C)
CP2? ? =? ? Conversion price immediately after new issue
CP2? ? =? 新發行后的轉化價格
CP1? ? =? ? Conversion price immediately before new issue
CP1? ? =? 新發行前的轉化價格
A? ? ? ? =? ? Number of shares of common stock deemed outstanding immediately before new issue [2]
A? ? ? ? =? 新發行前視為已發行普通股的數量［2］
B? ? ? ? =? ? Total consideration received by company with respect to new issue divided by CP1
B? ? ? ? = CP1除以公司新發行獲得的總對價
C? ? ? ? =? ? Number of new shares of stock issued
C? ? ? ? =? 已發行股份的數量
Let’s suppose a company has 1,000,000 common shares outstanding and then issues 1,000,000 shares of preferred stock in a Series A offering at a purchase price of $1.00 per share.? The Series A stock is initially convertible into common stock at a 1:1 ratio for a conversion price of $1.00.
假設一家公司已發行100萬普通股，之后在A輪中發行價格為每股1美元的100萬優先股。A輪股票最初可以1:1比例轉換為普通股，轉化價格為1美元。
Next, the company conducts a Series B offering for an additional 1,000,000 new shares of stock at $0.50 per share. The new conversion price for the Series A shares will be calculated as follows:
接下來，公司在B輪中以每股0.5美元增加發行100萬新股。A輪股票的新的轉化價格計算如下：
CP2 = $1.00 x (2,000,000 + $500,000) / (2,000,000 + 1,000,000) = $0.8333.
This means that each of the Series A investor’s Series A shares now converts into 1.2 shares of common (Series A original issue price/conversion ratio = $1.0 /$0.8333 = 1.2).
這意味著每個A輪投資者的A系列股票現在轉換為1.2普通股（A輪原始發行價格／轉換比例＝1美元／0.8333美元＝1.2）.
Under the discussion of full ratchet above, we noted that the preferred shares became convertible into 2 common shares post-issuance.? Under weighted average, the preferred shares became convertible into 1.2 shares.? This simple example illustrates that the weighted average approach is much less beneficial for the preferred investor but much less onerous for the common stockholders.
基于上述對棘輪條款的討論，我們注意到優先股在發行后轉換為2個普通股。根據加權平均值，優先股轉換為1.2個普通股。這個簡單的例子說明加權平均值對優先股投資者的受益并不多，但讓普通股股東減輕了負擔。
However, to provide a little more context, let’s assume our hypothetical company is sold and liquidated for $10,000,000 after the Series B round.? We’ll also assume, for simplicity, that there was no dividend preference for the preferred shares and that we’re using a non-participating structure.? Here’s how the cash gets distributed with full ratchet and weighted average, respectively:
然而，為提供一些更多的背景，假設我們設想的公司在B輪融資后被出售并以1000萬美元清算。為簡單其間，我們還假設對優先股沒有股息優先權，我們使用非參與結構。下表是現金如何通過棘輪條款和加權平均值各自實現分配：
棘輪條款
1000萬美元
實際
普通
完全稀釋
清算
股票
轉換
比例
收入
普通
100萬
100萬
25%
250萬
A輪
100萬
200萬
50%
500萬
B輪
100萬
100萬
25%
250萬
總計
300萬
400萬
100%
1000萬
?
加權平均值
1000萬美元
實際
普通
完全稀釋
清算
股票
轉換
比例
收入
普通
100萬
100萬
31%
312.5萬
A輪
100萬
120萬
38%
375萬
B輪
100萬
100萬
31%
312.5萬
總計
300萬
320萬
100%
1000萬
Note how much more the Series A investors get with full ratchet and how much this reduces the amounts distributable to Series B investors and common stockholders.
請注意A系列投資者通過棘輪條款得到多少，這會減少可分配給B系列投資者和普通股東的金額。
No Price-Based Anti-dilution Protection 無價格基礎的反稀釋保護
The third alternative for anti-dilution in the NVCA’s term sheet is no price-based anti-dilution protection.? In this scenario, the preferred investor bears the risk of a down round along with the common stockholders.? This is the fairest from the standpoint of the common stockholders but many preferred investors will not agree to take the down round risk without any anti-dilution protection.
在美國風險投資協會條款清單中第三個反稀釋的方法是無價格基礎的反稀釋保護。在這種情況下，優先股股東與普通股股東共同承擔下跌的風險。從普通股股東角度而言這是最公平的方式但是許多優先股投資者在沒有任何反稀釋保護的條件下不會同意承擔下跌的風險。
