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Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.
Pro rata is Latin for “in proportion” or “proportionately.” With startup investing, an investor with pro-rata rights will have the option to invest in future funding rounds to maintain their portion of ownership.
For example, say a seed investor owns 5% of your company and you’re raising a new funding round. The investor can choose to invest a proportional amount to maintain their 5% ownership stake rather than having their portion diluted.
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