“Major investors will have the right to participate on a pro rata basis in subsequent issuances of equity securities
Explanation:
Allows current investors to retain their current ownership percentage in future financing rounds.”
Is this right? My understanding was that pro-rata = if an investor owns (say) 20% of a company, then they get to participate with up to 20% of the total of any subsequent financing. This may or may not maintain them at their original 20%.
Explanation:
Allows current investors to retain their current ownership percentage in future financing rounds.”
Is this right? My understanding was that pro-rata = if an investor owns (say) 20% of a company, then they get to participate with up to 20% of the total of any subsequent financing. This may or may not maintain them at their original 20%.