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Anti-dilution provisions protect investors from losing equity value during future funding rounds. These clauses come into play when a company issues new shares at a lower valuation than earlier rounds, ensuring the investor's ownership stake isn't disproportionately reduced. Commonly used methods include the weighted-average and full-ratchet adjustments anti dilution rights provide security for investors, maintaining fair shareholding percentages and encouraging trust, even as companies raise additional capital to fuel growth and achieve their business objectives.