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.

Usage and Context

A pay-to-play provision requires current investors to join future funding rounds to avoid equity dilution.

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.

Benefits

Pay-to-play provisions protect existing investors from dilution by ensuring continued participation.

Conclusion

Pay-to-Play Provisions protect existing investors from dilution by ensuring continued participation.