Just as a point of technicality, this is not pro rata for YC, right?
> a pro rata clause in an investment agreement gives the investor a right (but not the obligation) to participate in one or more future financing rounds to maintain their percentage stake in the company.
This deal explicitly says "hey, here's 375k; we'll take whatever share of your company that is next time you raise." That's not maintaining percentage stake; it's actually agreeing to the possibility of a fairly small stake.
That's true. I wasn't sure what else to call it. I guess it's more investment upfront at a later valuation. It's almost like a SAFE where the next SAFE acts like a priced round.
It's a non-trivial amount though -- it's probably the case that the next funding round for most YC companies gets low millions. So that's a nice chunk of the round.
Getting it upfront is unique though, and really quite valuable at this early stage. Still curious if YC will allow opting out -- I don't think I would have -- but still curious.
> a pro rata clause in an investment agreement gives the investor a right (but not the obligation) to participate in one or more future financing rounds to maintain their percentage stake in the company.
This deal explicitly says "hey, here's 375k; we'll take whatever share of your company that is next time you raise." That's not maintaining percentage stake; it's actually agreeing to the possibility of a fairly small stake.