Pro Rata Rights

Définition

Pro rata rights let an investor maintain their ownership percentage by investing in future rounds, buying enough of each new round to avoid dilution.

Comment cela se présente dans le financement

Standard for significant checks; angels and small funds negotiate them via side letters on SAFEs.

Questions fréquemment posées

Why do investors fight for pro rata?

Venture returns concentrate in a few winners; pro rata is the right to keep buying the winners as they emerge.

Can pro rata rights hurt founders?

Occasionally they crowd hot later rounds, squeezing allocation for new leads; most of the time honoring them keeps loyal investors loyal.

Mettez ce terme en pratique

Les définitions ne gagnent des négociations que lorsque vous y êtes. Trouvez les investisseurs qui financent votre étape et commencez la conversation.

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