Pro rata rights or proportional rights let existing investors keep their ownership stake by investing more when a company raises funding. Pro rata rights, sometimes called proportional rights, are ...

The United States Court of Appeals for the Fifth Circuit (the “Fifth Circuit”) ruled on December 31, 2024 that Serta Simmons Bedding’s (“SSB”) 2020 uptier exchange included a transaction that, ...

In startup financing, certain investor rights show up so often that they feel like part of the background. One of the most common (and most misunderstood) is pro rata rights. Whether you are a founder ...

Pro rata ensures equal treatment based on stake or time in financial transactions like mortgages. When shifting insurance mid-plan, pro rata calculations secure partial refunds based on unused ...

Lee Edwards, partner at Root VC, has a saying at his firm that “pro rata rights are earned, not given.” That may be a bit of a stretch since pro rata refers to a term that VCs put in their term sheets ...

Markets regulator Sebi on Friday came out with a draft circular to clarify operational aspects of maintaining pro-rata and pari-passu rights of investors in alternative investment funds (AIFs).