For the complete documentation index, see llms.txt
For the complete documentation index, see llms.txt
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What are Pro Rata rights, and why do they matter?
## What Pro Rata rights are
Pro rata rights give you the contractual right to invest in a company's **future funding rounds** so you can maintain your ownership percentage as the company raises more money.
## Why they matter
Without pro rata rights, each new round of investors **dilutes** your stake — your percentage of the company shrinks even if the company is doing well. With them, you get the option to invest enough in a later round to keep your ownership percentage roughly the same.
Whether this matters to you depends on the company's trajectory. If a company raises several follow-on rounds and grows significantly, the ability to maintain your percentage can be valuable. If it never raises again, pro rata rights have no practical effect.
## Good to know
Pro rata rights are **deal-specific** — they're a term set by the founder, and **not every Wefunder campaign offers them**. Check the specific investment's contract terms to see whether pro rata rights are included.
