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It took me a second to work through. Basically, they just said they will always do some of their effective pro rata. So more weight on the cap table. Hopefully
by lmeyerov 5y ago
It took me a second to work through. Basically, they just said they will always do some of their effective pro rata. So more weight on the cap table. Hopefully it isn't required, bc sometimes there isn't a lot of room, and their value goes down the further out you are. But for weaker companies, for helping their rounds kick off, can be good.
- dannyw 5y agoNope. They still retain their perpetual, unlimited 4% pro rata in addition to the 375k most favorable note. This is extra pro rata.
- lmeyerov 5y agoYep, and apparently forced bc they give the $ on day 1. That's a lot of %, and before most founders understand what is happening, esp. in their target demographic....