how to compute pro rata

Pro rata is a term used to describe a proportionate allocation. It's a method of assigning an amount to a fraction according to its share of the whole. TechCrunch: Seed VCs are turning to new ‘pro rata’ funds that help them compete with the big firms Lee Edwards, partner at Root VC, has a saying at his firm that “pro rata rights are earned, not given.” That may be a bit of a stretch since pro rata refers to a term that VCs put in their term sheets ...

Understanding the Context

Seed VCs are turning to new ‘pro rata’ funds that help them compete with the big firms Two Key Applications for Pro Rata Rules Pro rata is a Latin term that means "in proportion." To use a simple example of pro rata in action, if I go out with a friend and she orders three drinks and I ... TechCrunch: Pro-rata is easier to get than ever today, but investors are thinking twice Whenever pro-rata rights are involved, you can always smell some drama. When a company raises a financing round, new and old investors often battle it out for the largest stake they can get. While ...