
Ask HN: What's pro-rata? (And How to learn that related stuff?) - santiagobasulto
With the recent top post about YC &quot;adding a pro rata provision&quot; I feel like a complete n00b in these topics. I&#x27;m a startup founder and we&#x27;re profitable, but I&#x27;m not familiar with all these terms. Maybe because we&#x27;ve bootstrapped and never need to raise money, but I still want to learn in case we ever receive private funding.<p>Related question: I remember reading a post a woman wrote about how a founder can get screwed and lose the all the rights to his&#x2F;her company when the company was sold. Anyone remembers?<p>Sorry for the extra-n00b. Thanks!
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greenyoda
[https://en.wikipedia.org/wiki/Pro_rata](https://en.wikipedia.org/wiki/Pro_rata)

For example: _" In corporate practice, a pro-rata dividend means that every
shareholder gets an equal proportion for each share he or she owns."_

As for not getting screwed, the best thing you can do is to get a lawyer to
review all your contracts.

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mahringer_a
[http://www.bothsidesofthetable.com/2014/10/12/the-
authoritat...](http://www.bothsidesofthetable.com/2014/10/12/the-
authoritative-guide-to-prorata-rights/)

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mahringer_a
[http://avc.com/2014/07/the-pro-rata-opportunity/](http://avc.com/2014/07/the-
pro-rata-opportunity/)

those 2 should give u a good overview

