Pro Rata Side Letter (YC)

YCombinator

<ul><li>This pro rata side letter is an optional companion to YC's Postmoney Safe (Seed) Share Subscription with a valuation cap</li><li>The letter gives the investor the right to purchase its pro rata share of Standard Preferred Stock being sold in the Equity Financing</li></ul>

Pro rata right

Termination

Amendments, waivers & modifications

Governing law

No valuation cap

<ul><li>The pro rata side letter can only be used with forms of the safe that have a Post-Money Valuation Cap</li><li>See the Y Combinator Safe User Guide for further information</li></ul>

What to watch out for

NOVA LEGAL

Money Advisor Ltd

Cupids Compass 

Private.Law 

SHAKE YOUR PLANTS 

Hey Monday Ltd

CMKZ LLP

Stoka Global Management LLC

Valerie Eads

Asiatique Advisory Pte Ltd

xyz associates

Prevedere

DALC

Projekt 42

Silly Licensing

Amon

The Law Firm of Brandy Guillory

accelerate-construction-project

amend-a-contract

appoint-a-sales-agent

appoint-exclusive-distributor

appoint-franchise-licensee

assign-copyright-in-music

back-to-back-subcontract

collaborate-with-partners

commission-music

commission-screenplay-writer

confidentiality-agreement

create-a-prize-competition

create-a-prize-draw

create-a-tax-evasion-prevention-policy

create-an-anti-slavery-policy

create-loan-note

design-and-develop-website

develop-land

disclaimer-for-sports-event

distribute-film

facilities-management-agreement

grant-power-of-attorney

guarantee-payment

hire-a-venue

hire-equipment

intercompany-service-agreement

letter-of-intent

license-a-software-product

license-content

license-digital-content

loan-or-borrow-art

make-a-film

make-side-letter-binding

market-a-product-or-service

mutual-service-agreement

novation-a-contract

novation-of-contract

optimize-website

outsource-it-services

place-goods-on-consignment

prepare-sponsorship-agreement

produce-a-video

protect-confidential-information

record-music-albums

refer-clients-for-a-fee

resell-a-product-or-data

reserve-rights-under-contract

run-a-product-pilot

sell-goods

sell-goods-internationally

set-out-minimum-standards

sponsor-a-sports-team

supply-a-product-or-service

supply-goods

transfer-construction-goods-ownership

commercial

partnerships

sales

suppliers

apply-for-naturalisation

appoint-professional-consultant

become-employee-shareholder

create-a-founder-agreement

create-a-cfa

create-a-stock-option-scheme

employment-contract

enter-into-a-dba

file-an-et1-form

give-statement

hire-an-advisor

hire-an-intern

hire-a-consultant

hire-a-director

hire-a-non-executive-director

hire-an-actor

hire-an-employee

jointly-own-shares

offer-alternative-employment

postpone-or-adjourn-hearing

reaffirm-agreement

require-employee-to-live-in-premise

second-an-employee

terminate-an-employee

employment

share-schemes-incentives

assign-ip

assign-a-patent

assign-a-trade-mark

claim-against-trade-mark

claim-copyright-infringement

create-a-data-retention-policy

license-ip

license-a-character

license-the-knowhow-from-a-patent

maintain-software

process-data

provide-a-managed-service

sell-or-outsource-software-development

use-a-registered-trade-mark

data-protection

ip-data

add-website-terms-conditions

adhere-to-agreement

build-a-contract

create-a-backup-policy

create-a-clear-desk-policy

create-a-cloud-computing-policy

create-a-cryptographic-controls-policy

create-a-disciplinary-and-grievance-policy

create-a-laptop-policy

create-a-policy-for-internet-email-use

create-a-policy-for-supplier-security-requirements

create-a-virus-protection-policy

create-an-environmental-policy

create-an-equal-opportunities-policy

administration

policies

acceptance-condition

agree-an-investment-term-sheet

approve-annual-accounts

approve-interim-dividend

arrange-a-loan

articles-of-association

buy-and-sell-business

buy-back-shares

buy-company-shares

buyers-disclosure-letter

call-option-agreement

convertible-loan-note

create-a-pro-rata-investment-side-letter

create-articles-of-association

create-a-partnership

create-an-agreement-between-shareholders

create-limited-partnership

ensure-environmental-reliance-for-a-property

exit-fee-or-profit-share

give-comfort-letter

issue-legal-opinion

issue-shares

lend-or-borrow-a-loan

loan-from-shareholder

loan-money-for-film

manage-residential-property

mortgage-chattels

purchase-small-business

raise-debenture-debt

raise-equity-investment

release-guarantor

remove-mortgages-charges-on-asset

sell-business-assets

subscribe-to-shares

waive-and-consent

capital-markets

corporate

finance

financial-services

investment

acknowledge-data-request

create-a-consortium

loan-equipment

r-d-agreement

transfer-materials

research-development

consumer

crypto

acceptance-of-shares

apply-for-clearance

assign-equitable-interest

assign-leasehold-benefit

buy-a-commercial-property

carry-out-property-alteration

change-terms-of-lease

consult-on-transfer

create-memorandum-of-understanding

Pro Rata Side Letter (YC)

When to use this template

Key issues covered in this template

What to watch out for

Author

Rafie Faruq

Organisations that used this template

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Terms of use

Additional information