In the context of a term sheet, pro rata rights (or pro rata) govern whether investors may continue to invest in subsequent rounds of funding in proportion with their ownership. Investors with pro ...

Pro rata rights or proportional rights let existing investors keep their ownership stake by investing more when a company raises funding. Pro rata rights, sometimes called proportional rights, are ...

Note: This article is part of Morningstar's 2018 Guide to IRAs special report. A version of this article appeared on Oct. 10, 2016. At first blush, the term "pro rata" sounds like the worst type of ...

Lee Edwards, partner at Root VC, has a saying at his firm that “pro rata rights are earned, not given.” That may be a bit of a stretch since pro rata refers to a term that VCs put in their term sheets ...