Pro Rata
topic on 2 shows · 10 statements across 8 episodes
10 statements about Pro Rata, every show
Hinrikus: Uniformly exercising pro-rata rights is a VC cop-out
“Fundamentally, I agree with the idea that just doing your prorata is a cop out. You either want to do nothing or triple down.”
Stebbings: VCs Will Never Regret Skipping Pro-Rata in Middle-Tier Portfolio Companies
“I believe the pro rata for your middle tier is never actually a great thing anyway. Like the messy middle pro rata, you're not gonna regret not doing it.”
Mohnot: Better Tomorrow Ventures does not automatically exercise pro-rata rights
“Yeah, we definitely don't always do our pro rata. I would say we are choosy”
Harlem Capital automatically exercises pro-rata rights unless a startup significantly underperforms
“We typically do pro rata for most of our companies. I mean, unless you fall off a cliff, we're going to do pro rata, and we signal that to the founders. Part of, hey, we're leading Your seed round, we're going to be supportive in your seed plus or your series …”
Bonfire Passes on Full Pro Rata in Preemptive Series A Rounds
“Yeah, and to be honest, like, we're not, in those situations we're talking about, we're not perhaps taking the entire prorata we have, ok? So, we are managing that capital.”
Mullen: Seed Pro Rata Signaling Risk Has Become Far Less Relevant
“One of the reasons that it was important to commit to doing your pro rata was there was this thing called signaling risk, which people were worried about. And that still is relevant today, but less relevant.”
Early-stage VCs cannot rely on executing pro-rata rights in breakout companies
“In reality, when you really are trying to invest your pro rata into the companies that are becoming really great, the assumption that it is going to be available for you is false.”
Samir Kaul: Exercising default pro rata rights is a total cop-out
“So to me, I think pro rata is a total cop-out.”
Founders in top deals often ask angel investors to forego pro rata
“And the other thing that happens in good deals is the founder frequently doesn't want you to do your pro rata because they want to give the new investors as much room as possible. So I found that there's an alignment generally in the good deals that, hey, stic…”