template

Pro Rata Side Letter (YC)

by
R
Rafie Faruq
Apr, 13 2022

When to use this template

  • This pro rata side letter is an optional companion to YC's Postmoney Safe (Seed) Share Subscription with a valuation cap

  • The letter gives the investor the right to purchase its pro rata share of Standard Preferred Stock being sold in the Equity Financing

Key issues covered in this template

  • Pro rata right
  • Termination
  • Amendments, waivers & modifications
  • Governing law
  • No valuation cap

What to watch out for

  • The pro rata side letter can only be used with forms of the safe that have a Post-Money Valuation Cap

  • See the Y Combinator Safe User Guide for further information

50

Used by

Author

R

Rafie Faruq

@rafie43034244
YCombinator

Apollo Management Team Inc.
Silly Licensing
Angoka
l
Belal Badat Ventures
Stoka Global Management LLC
Prevedere
bvcx
Smith, Gambrell & Russel
M
Thymia
Private.Law
+38 more
Legal Services
20%
Consultancy
16%
Technology
13%
Finance
7%
Other
6%
Education
5%
Media
5%
Real Estate
3%
Consumer, Public & Health Services
3%
Manufacturing
3%
Agriculture, Forestry and Fishing
3%
Energy
3%
Sport & Entertainment
3%
Construction
2%
Transport
2%
Retail
2%
Insurance
2%
Mining
2%

Terms of use

This is not legal advice - see more
Genie AI terms and conditions
Code of conduct

Additional information

Business categories

Investment

Business activities

Create A Pro-Rata Investment Side Letter

Contract type

Pro-Rata Side Letter To Investment Agreement

Relevant sectors

Technology

Relevant company sizes

1 - 3

20 - 49

4 - 19

50 - 249

Governing law

United States

Language

English US

Gender neutral

Yes