For the complete documentation index, see llms.txt
For the complete documentation index, see llms.txt
Wefunder
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Pro rata rights — what they are and how they work
Pro rata rights let an early investor put more money into a company's future funding rounds to maintain their ownership percentage, rather than being diluted. Here's what that means on Wefunder.
## What "pro rata" means
When a company raises a new round, it issues new shares, which reduces (dilutes) existing investors' ownership percentage. A pro rata right is the option — not the obligation — to invest more in that new round to keep your percentage roughly the same.
## Do I have pro rata rights on my investment?
Whether you have pro rata rights depends on the terms of the specific investment and the contract you signed. Not every investment includes them, and they often apply only above a certain investment size. Check your investment's contract for the details — you can download your contracts from your Portfolio at wefunder.com/portfolio.
## How pro rata is exercised
If a company you invested in raises a new round and your investment carries pro rata rights, you may be offered the chance to participate. Availability depends on the company and the round.
## Questions?
For questions about pro rata rights on a specific investment, email updates@wefunder.com. This is general information, not investment advice.
