Business Pitch Dictionary by pitch.dog
Term-sheet economics · Specialist

Broad-based weighted average

Also called: broad-based WA

ELI5

A generally less severe down-round adjustment using more shares in the calculation.

Used in conversation

“Counsel modelled the broad-based weighted average.”

Definition

A weighted-average anti-dilution formula using a broad fully diluted denominator.

Here “Broad-based weighted average” means: A weighted-average anti-dilution formula using a broad fully diluted denominator.

Pitch context

You will see “Broad-based weighted average” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches term-sheet economics.

Why it matters: In term-sheet economics, 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.