Compute · Transform · Analysis & Finance

Compute a weighted-average anti-dilution conversion price

A function that applies the broad-based weighted-average anti-dilution formula to produce the adjusted conversion price for an earlier preferred series after a dilutive financing.

You receive: A pure function weightedAverageCP(input) -> { newConversionPrice, conversionRatio } graded on hidden cases.

Part of Pitch Investors

What's verified: STUD verifies the conversion-price math matches the broad-based weighted-average formula on hidden inputs. STUD does NOT decide whether weighted-average vs full-ratchet is the right clause, whether the down round itself is wise, or the legal enforceability of the clause.

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Cost20 credits

AcceptanceAutomated check against your inputs

ProtectionHeld until verified delivery

This objective is verified and ready. It opens soon, once sign-in and payments are live.

Deliverable interface

The exact vocabulary the automated check enforces: keys, tokens, entry points, and worked examples. Generated from the verification source.

{
 "constants": {},
 "entryName": "weightedAverageCP",
 "expectNote": "expect is the comparison-space value (your return value goes through normalize first when one is published)",
 "hiddenCaseCount": 12,
 "hiddenCaseNames": [
  "gen0",
  "gen1",
  "gen2",
  "gen3",
  "gen4",
  "gen5",
  "gen6",
  "gen7",
  "gen8",
  "gen9",
  "gen10",
  "gen11"
 ],
 "inputKeys": [
  "amountRaisedNewRound",
  "commonEquivalentOutstandingPrior",
  "newSharesIssued",
  "oldConversionPrice",
  "roundingDecimals"
 ],
 "normalizeSource": "def _normalize_weighted_average_antidilution(r):\n    if not isinstance(r, dict): return r\n    def n(x): return None if x is None else round(float(x), 6)\n    return {\"newConversionPrice\": n(r.get(\"newConversionPrice\")), \"conversionRatio\": n(r.get(\"conversionRatio\"))}\n",
 "returnShapes": [
  [
   "conversionRatio",
   "newConversionPrice"
  ]
 ],
 "signature": "def weightedAverageCP(inp):",
 "submission": "python exposing the entry function; inp is one input object; graded on held-out cases",
 "tier": "calculator",
 "visibleCases": [
  {
   "expect": {
    "conversionRatio": 1.136364,
    "newConversionPrice": 1.76
   },
   "input": {
    "amountRaisedNewRound": 4000000,
    "commonEquivalentOutstandingPrior": 13000000,
    "newSharesIssued": 4000000,
    "oldConversionPrice": 2,
    "roundingDecimals": 2
   },
   "name": "down_round"
  },
  {
   "expect": {
    "conversionRatio": 1,
    "newConversionPrice": 2
   },
   "input": {
    "amountRaisedNewRound": 4000000,
    "commonEquivalentOutstandingPrior": 13000000,
    "newSharesIssued": 2000000,
    "oldConversionPrice": 2,
    "roundingDecimals": 2
   },
   "name": "no_dilution"
  },
  {
   "expect": {
    "conversionRatio": 1.362398,
    "newConversionPrice": 3.67
   },
   "input": {
    "amountRaisedNewRound": 5000000,
    "commonEquivalentOutstandingPrior": 10000000,
    "newSharesIssued": 5000000,
    "oldConversionPrice": 5,
    "roundingDecimals": 2
   },
   "name": "steep_down"
  },
  {
   "expect": {
    "conversionRatio": 1.086957,
    "newConversionPrice": 0.92
   },
   "input": {
    "amountRaisedNewRound": 2000000,
    "commonEquivalentOutstandingPrior": 20000000,
    "newSharesIssued": 4000000,
    "oldConversionPrice": 1,
    "roundingDecimals": 2
   },
   "name": "small_down"
  }
 ],
 "vocabulary": [
  "amountRaisedNewRound",
  "commonEquivalentOutstandingPrior",
  "conversionRatio",
  "newConversionPrice",
  "newSharesIssued",
  "oldConversionPrice",
  "roundingDecimals"
 ]
}

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