Cryptocurrency and Virtual Currency Accounting
Real Estate and Construction Accounting
Hi Saim, good evening. Can you please let me know what pro-rata is, but in a simple explanation? I’ve Googled it and am more confused.
Sure, so, SAFE Agreements ask the company to allow holders to participate in crypto fundraising rounds. a SAFE Pro Rata Agreement (or Rights Agreement) is the actual letter a company provides to a SAFE investor. That way, the investor can purchase more shares if there is a next round or later round of fund raising.
For example, if the safe converted in the Series A Preferred Stock financing, he would be allowed to purchase a pro-rata portion of the Series, B Preferred Stock).
© Saim Akif, 2021