L3VLUP

Pro Rata Ownership Target

The stake a fund aims to hold in a company at entry, usually 10 to 20% for a lead at seed or Series A, chosen so that a single large exit can return the fund. It drives the cheque size and the valuation a fund can accept: a $50m fund that needs 15% of a company to matter cannot lead a round at a $100m post-money.

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