Implementation of Anti-dilution Agreement in Venture Capital Contracts According to Iran’s Legal System

Venture capital investment is one of the most important and most effective means of financing new businesses. In this type of investment, during the short-term or medium-term relationship with startup companies while financing and providing management support for these types of businesses, investors finished this relationship in different ways and exit the startup companies at the time they find their benefits obtained. One of the most important issues for investors is to prevent dilution of capital and maintain percentage of ownership in the startup companies. The most important tool for investors in this regard is to prevent percentage and economic dilution through contractual agreements. In this essay, while clarifying the concept of venture capital, dilution, the situations that lead to the dilution, and the types of anti- dilution agreements, we conclude that the application of this agreement is permissible in accordance with the legal rules in force in Iran.