The Authoritative Guide to Prorata Rights
Both Sides of the Table
OCTOBER 12, 2014
For starters some funds are small and thus while they put $750k into your company to own 10% of your company they might not be able to write another $2 million if you then raise a $20 million round (10%). New investors sometimes want early investors to put in money to “prove” they have confidence in the new price.
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