# What is Pro Rata?

An investor's right to buy shares in later rounds so their ownership percentage stays the same. It lets an early investor avoid dilution in a company they still believe in, at the cost of new money each round.

## In real work

Kenji used his pro rata in the Series A, putting $100,000 into the $5 million round to keep his 2 percent stake in the freight-routing startup.

## Related terms

- [SAFE](https://prompthausapp.com/learn/safe.md)
- [Valuation Cap](https://prompthausapp.com/learn/valuation-cap.md)
- [Dilution](https://prompthausapp.com/learn/dilution.md)
- [Limited Partner](https://prompthausapp.com/learn/limited-partner.md)
- [Carried Interest](https://prompthausapp.com/learn/carried-interest.md)

## How is this different from Googling it?

Google gives a definition. Prompthaus pairs each term with how it shows up in standups, PRs, prompts, and design reviews. Then it quizzes you until the word sticks. One term a day on iPhone.

- Category: Venture
- HTML: https://prompthausapp.com/learn/pro-rata
- App Store: https://apps.apple.com/us/app/prompthaus-ai-vocabulary/id6776314407