Also called pro rata, participation rights, pre-emptive rights
The right of an existing investor to buy enough of a future round to keep their ownership percentage from being diluted.
Need this for your company? See Raising money, or book a free 15-minute call.
General information about Ontario and Canadian law, not legal advice. All terms
For Founders Law
Book a free 15-minute call, or send us a message and we’ll reply by email. Whatever is easiest for you.
Hi, I’m Loop.
Ask about this page, or anything about starting, raising or running your company. I explain the general rules in plain English, and I don’t bill in six-minute increments.
Loop is an AI assistant, not a lawyer or a person. Its answers are general information about Ontario and Canadian law, not legal advice, and can be wrong, so check with a lawyer before you act. We don’t save your chat. Anthropic, our AI provider, processes it to write the answer, stores it in the United States and may keep it for up to 30 days, or longer in limited cases. Privacy
AI can be wrong. Not legal advice. Leave out confidential details.