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Ask HN: YC Pro Rata Side Letter

1 pointsby dmabramover 3 years ago
The YC pro rata side letter seems to terminate after the initial &quot;Equity Financing.&quot; (&quot;The Pro Rata Right described above shall automatically terminate upon the earlier of (i) the initial closing of the Equity Financing&quot;)<p>Is this interpretation correct? Do investors who use the YC pro rata side letter lose the right to maintain their position in future follow on rounds?<p>YC describes their own pro-rata rights as continuing though future rounds: &quot;Additional Future Financing Rounds: When you conduct later rounds of financing, we continue to have a participation right to purchase up to 4% of the new money securities.&quot;<p>Does YC receive pro-rata rights that are broader than those included in the SAFE pro-rata side letter?

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