Pro-Rata Rights
An investor's right to put more money into your future funding rounds to maintain their existing ownership percentage, instead of automatically getting diluted.
Quick Answer
Do all investors automatically get pro-rata rights?
No — pro-rata rights must be explicitly granted in the investment documents, and are typically reserved for investors above a minimum check size rather than extended to every check written into a round.
- Check the specific agreement, not a general assumption
- Rights are usually tied to a minimum investment threshold
- Honoring these rights affects how much room is left for new investors
The Lovie Advantage
Lovie tracks which investors hold pro-rata rights directly on the cap table, so a future round never overlooks who's entitled to participate.
See how this connects to Option Pool. For the formal definition, see Investor.gov's glossary entry on accredited investors.
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