Conversion price adjustment is a contractual mechanism that changes the price at which a convertible security converts into equity—typically lowering the conversion price via a discount and/or valuation cap (and, in other contexts like preferred stock, via anti-dilution adjustments) so earlier investors receive more shares on conversion.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
