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

53

Used by

Author

R

Rafie Faruq

@rafie43034244
YCombinator

Selftalk
Wahbeh Law
Clique Living Ltd
Bonifacio One
Prevedere
Gkh
Money Advisor Ltd
BYCap Ventures Kurumsal Finansman Danismanlik AS
Samantha Scott Business Law
Femprenuer NZ
Spoon Cereals
Smith, Gambrell & Russel
+41 more
Legal Services
20%
Consultancy
15%
Technology
13%
Finance
8%
Other
6%
Education
4%
Media
4%
Consumer, Public & Health Services
4%
Construction
3%
Real Estate
3%
Manufacturing
3%
Agriculture, Forestry and Fishing
3%
Energy
3%
Sport & Entertainment
3%
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

3 years ago

R

Rafie Faruq

Description updated

5 years ago

R

Rafie Faruq

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