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Pro Rata Rights

Learn More About Follow On Investment in Subsequent Funding Rounds Follow on investments are most commonly associated with institutional investments from venture capital or private equity firms. However, the same concept can be relevant to individual investors, deciding whether or … Continue reading

Understanding Pro Rata Rights

Understanding Pro Rata Rights

Understanding Pro Rata Rights Is Essential for Investors Pro rata rights represent the right for investors to participate in subsequent rounds of startup funding beyond their original investment. Pro rata rights are typically used to preserve equity or ownership stakes … Continue reading

No matter what funding round an investor decides to invest in, subsequent funding rounds can impact an investment. Each funding round a startup goes through after an investment is made has the potential to reduce the ownership stake, slowly chipping … Continue reading