So Your VC Wants To Invest More? 5 Practical Tips For Entrepreneurs

3 min read

If your VC wants to invest more in you then you have a good problem in your hands. Here are five practical ways to think about it. 1) Prorata (and Super Prorata) A prorata is the option but not the obligation of an investor to invest as much in a future round to maintain their ownership. Simple example: you raised 2 on 8 i.e., $10M post with a VC putting in $1M (10% ownership). Now you are raising 5 on 20 i.e., $25M post so that VC would want to put in additional $1.5M to have a total of $2.5M…...

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Amit Garg I have been in Silicon Valley for 20 years -- at Samsung NEXT Ventures, running my own startup (as of May 2019 a series D that has raised $120M and valued at $450M), at Norwest Ventures, and doing product and analytics at Google. My academic training is BS in computer science and MS in biomedical informatics, both from Stanford, and MBA from Harvard. I speak natively 3 languages, live carbon-neutral, am a 70.3 Ironman finisher, and have built a hospital in rural India serving 100,000 people.