Pay-to-Play Provision
Definition
A Pay-to-Play Provision requires existing investors to participate in future funding rounds to avoid dilution of their equity stake.
Benefits
Pay-to-play provisions protect existing investors from dilution by ensuring continued participation.
Frequently Asked Questions
What is pay-to-play provision? A pay-to-play provision requires existing investors to participate in future funding rounds to avoid equity dilution.
What is pay-to-play anti-dilution? Pay-to-play anti-dilution requires existing investors to participate in future rounds to avoid dilution.
What is a pay-to-play equity round? A pay-to-play equity round requires existing investors to participate in future rounds to maintain their equity.
Summary
Pay-to-Play Provisions protect existing investors from dilution by ensuring continued participation.