Pro Rata Side Letter (YC)
Publisher one
YCombinatorSource file
Pro Rata Side Letter (YC).docxJurisdiction
United StatesContract party
Relevant sectors
Type of legal document
✉️ Pro-Rata Side Letter To Investment AgreementBusiness activity
Create a pro-rata investment side letterA pro-rata side letter to an investment agreement is a document that outlines the rights and obligations of the parties with respect to the pro-rata allocation of investments. This document typically covers the following topics: the amount of the investment, the percentage of the investment that each party will receive, the terms of the investment, and the consequences of a breach of the agreement.
This legal document outlines the terms and conditions associated with pro rata rights specifically for investors who are part of the Y Combinator (YC) network. YC is a prominent startup accelerator that provides funding and support to early-stage companies.
The Pro Rata Side Letter aims to clarify and define the rights and limitations of YC investors when it comes to participating in future funding rounds of the company they have invested in. It typically covers provisions such as the deadline for exercising pro rata rights, minimum investment amounts, communication and notification procedures, and any specific terms exclusive to YC investors.
Under UK law, this legal template ensures compliance with applicable regulations and provides a standardized framework for negotiations and agreements between the company and YC investors. It offers a level of transparency and clarity to both parties, facilitating smooth and efficient decision-making processes during subsequent funding rounds.
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