Silicon Valley Self Regulation
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Pro-Rata

photo by Robert S. Donovan

photo by Robert S. Donovan

PRO-RATA

description

Pro-rata, in the tech ecosystem, refers to a type of investment right that allow an investor to participate in a subsequent round of funding that maintains the percentage of ownership that the investor currently holds in the company.

helpful resources

Pro-rata selection at Investopedia

What are pro-rata investment rights? at FundersClub

Fred Wilson's The Pro-Rata Participation Right at AVC

Mark Suster's What all Entrepreneurs Need to Know About Prorata Rights at Both Sides