Pro rata rights
An investor's right to invest again in future rounds to maintain their ownership percentage.
Prized by VCs because it protects their winners; founders should track how much of the next round is pre-committed to it.
Hear it from people who've done it
Get the real-world version of "Pro rata rights" drawn from hundreds of conversations with founders and investors.
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Follow-on
A fund investing again in a company it already backs, usually to defend ownership in a later round.
Ownership target
The percentage of a company a fund aims to own, driving how big a cheque it needs to write.
Dilution
The drop in your ownership percentage each time the company issues new shares.
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