Glossary · Investor rights
Pro rata rights
The option for an existing investor to invest their share of a new round so they stay roughly the same percent owner. It keeps winners from being washed out without paying more.
Related: Venture capital (VC) · Series A · Dilution
A bit more nuance▾
- Not everyone has pro rata — check each agreement.
- Super pro rata means investing even more than your ownership share.
Go deeper▾
Discussion questions▾
- Which early backers would you want in every future round?
- What if a helpful angel cannot afford their pro rata?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.