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 ...

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, ...

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 ...

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 ...

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 ...