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Glossary Term
Dilution
Definition
Dilution occurs when a company issues additional shares of equity, reducing the ownership percentage of existing shareholders. In the MedTech industry, dilution often happens during fundraising rounds, stock option exercises, or conversions of convertible debt into equity to finance product development, regulatory submissions, or market expansion.
Relevance to the MedTech Industry
Dilution is a common mechanism for raising capital in MedTech, particularly for startups and growth-stage companies developing medical devices. It allows companies to secure the funding needed to navigate lengthy and costly processes, such as clinical trials, regulatory approvals, and commercialization.
Additional Information & Related Terms
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