Business Pitch Dictionary by pitch.dog
Cap table, ownership & dilution · Working

As-converted basis

Also called: as converted

ELI5

Calculate ownership as though conversion has happened.

Used in conversation

“Voting is measured on an as-converted basis under the agreement.”

Definition

A calculation treating convertible or preferred securities as if already converted into common shares.

Here “As-converted basis” means: A calculation treating convertible or preferred securities as if already converted into common shares.

Pitch context

You will see “As-converted basis” 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.

Sources & evidence · 5

Direct term-level sources and supporting source families.