Pro-Rata Participation Rights – What does it mean and what should you pay attention to?
Meaning of Pro-Rata Participation Rights Pro-rata participation rights, also known as pro-rata investing rights, or preemptive rights, grant existing shareholders or investors in convertible instruments such as SAFE, the right to participate in subsequent fundraising rounds. The right allows them to maintain, and sometimes to increase, their percentage ownership in the entity. The right is … Read more Pro-Rata Participation Rights – What does it mean and what should you pay attention to?
