Although the majority of small businesses in the United States operate as sole proprietorships, many companies have multiple owners. If these multiple-owner companies are legally structured as regular ...

In the context of a term sheet, pro rata rights (or pro rata) govern whether investors may continue to invest in subsequent rounds of funding in proportion with their ownership. Investors with pro ...

Most insurance policies are written for a specific term. Business auto polices, for example are usually written for the term of one year. In a perfect world, one-year policies come and go without need ...

Pro-rata rights are one of the most important rights of private market technology investors and yet are seldom fully understood. They often create the biggest tensions between investors who are ...

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 ...

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 ...

Among the many financial innovations that came out of the COVID era, non-pro rata uptier transactions as a liability management exercise (“LMEs”) are among the more controversial. While lawsuits ...

With rumblings growing about the Big 12 possibly adding Gonzaga, some extra context has been reported about the pro rata clause included in the conference’s new media rights deals. First, as reported ...