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Dictionary by pitch.dog
Cap table, ownership & dilution · Core

Fully diluted ownership

Also called: fully diluted basis

ELI5

Ownership after counting securities that could become shares.

Used in conversation

“The investor asked for the fully diluted ownership percentage.”

Definition

Ownership calculated assuming specified options, warrants and convertible securities become shares.

Here “Fully diluted ownership” means: Ownership calculated assuming specified options, warrants and convertible securities become shares.

Pitch context

You will see “Fully diluted ownership” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches cap table, ownership & dilution.

Why it matters: In cap table, ownership & dilution, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 5

Direct term-level sources and supporting source families.