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

33

Used by

Author

R

Rafie Faruq

@rafie43034244
YCombinator

C
W
x
C
A
A
S
D
M
P
S
C
+8 more
Legal Services
18%
Consultancy
17%
Technology
12%
Other
8%
Finance
6%
Real Estate
5%
Energy
4%
Consumer, Public & Health Services
4%
Education
4%
Sport & Entertainment
4%
Media
4%
Construction
3%
Manufacturing
3%
Transport
2%
Agriculture, Forestry and Fishing
2%
Retail
2%
Insurance
2%

Additional information

Business categories

Relevant sectors

Technology

Relevant company sizes

1 - 3

20 - 49

4 - 19

50 - 249

Governing law

United States

Language

English US

Gender neutral

Yes