Plain English
The investor gets the right to buy enough in future financings to maintain their ownership percentage.
Side Letter Explorer
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Created by Solo Founders Program ().
Not legal advice or a substitute for company counsel. For educational purposes only.
Participation
NegotiablePro rata rights
Why Investors Ask
Early investors want protection from dilution if the company raises a strong next round.
Founder Impact
Usually workable, but it reserves room in later rounds and can complicate allocation when many small investors have the same right.
Aggressive Signals
- Applies to every investor regardless of check size
- Survives indefinitely after a priced round
- Includes affiliates, funds, or syndicate members without a cap
Founder-Friendly Boundaries
- Limit to major investors or a named investor
- Terminate or conform the right at the next equity financing
- Exclude transfers to broad affiliate networks unless approved
Public References and Anonymized Patterns
These links are reference material, not endorsements. The glossary also includes anonymized patterns from private side-letter examples; no company names, people, signature details, dates, or deal-specific values are included.
