Honestly I'm a founder not investor, but one of the reasons that prices are so high is because of terms. Would I invest in a public company that may be overvalued (say Tesla) if I could get preferred shares, liquidation preferences, pro rata, etc? Yes.
So pro rata is just one in a basket of investor friendly terms.
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Honestly I'm a founder not investor, but one of the reasons that prices are so high is because of terms. Would I invest in a public company that may be overvalued (say Tesla) if I could get preferred shares, liquidation preferences, pro rata, etc? Yes.
So pro rata is just one in a basket of investor friendly terms.