We had both information rights and pro rata rights

from B Horowitz (Ft. Mase) – Instagram on Rap Genius


Information rights meaning Andreessen-Horowitz had privileged access to financials, business operation information, and future plans. Pro-rate rights meaning the fund could invest in future rounds to keep its overall percentage ownership constant, i.e. doubling down on a great investment.

There are different kinds of pro rata rights. With super pro rata rights, an investor can increase his ownership percentage in future rounds. This is widely believed to be bad for the entrepreneur and business (http://www.bothsidesofthetable.com/2011/09/25/why-super-pro-rata-rights-are-not-a-good-deal-for-entrepreneurs/)

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