What Pro-Rata Rights means

Pro-rata rights let an early investor put more money in at each subsequent round to avoid being diluted. If a fund owns 8% after seed and you raise a Series A that would dilute them to 6%, pro-rata rights let them invest enough at the A price to stay at 8%.

Pro-rata is standard for lead investors and commonly requested by seed funds. Founders sometimes push back to preserve room for new investors in later rounds.

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Pro-Rata Rights

Pro-Rata Rights

What Pro-Rata Rights means

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