ServiceTitan agreed to "compounding ratchet" terms as part of a 2022 funding round that valued the company at $7.6 billion, according to its prospectus. The decision "has put ServiceTitan on the clock to go public ASAP to minimize dilution impact," investors at venture firm Meritech Capital wrote in a blog post.
But Ara Mahdessian, ServiceTitan's CEO, said Thursday that the terms didn't influence the decision to go public now.
"Anti-dilution terms are not uncommon in financings," he said.