Narrow-Based Weighted Average

The Narrow-Based Weighted Average is an anti-dilution protection for equity holders. If equity is sold at a lower price than the price an investor paid previously, the price the investor previously paid is discounted. The price the investor originally paid and the new lower price are put into a weighted average formula. It is called narrow-based, as opposed to broad-based, because only outstanding common stock is used for the formula rather than all common stock on a fully-diluted basis. Narrow-based is more investor friendly than broad-based.

Operated by
Who are these people?

With several entrepreneurs in our ranks, we understand what goes into building a business. It’s much more than turning an idea into revenues. It takes preparation, planning, sacrifice, and adaptability. And once you’ve given everything you have, occasionally the tide changes and you have to re-think your entire strategy. With hundreds of successful startups as clients, we thrive on turning an initial consultation into a successful, long-term relationship. So give us a call and let’s get started.

Visit Our Website