Should angels be entitled to pro rata? This is a topic that comes up fairly often. The consensus by everyone (but angels) seems to be no. I tend to disagree; angels often take the most risk for the least reward in the investment stack. However as a small check angel, acting on my pro rata allocation if/when I have it gets expensive fast.
Justin Mares’ tweet this week piqued my interest:
I have definitely seen seed + micro funds syndicate their pro rata positions and perhaps this is something we’ll soon see angels do as well given the infrastructure exists (SPVs, etc). I’m also curious to know if structures exist to loan against pro rata, similar to how a SecFi loans against options/equity? What are creative ways to take advantage of pro rata? If anyone has insights, let us know!
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Deals:
An API company for payroll integration, recognizing products without bar codes, an app that rewards you for saving money via lottery systems, a portable and private proof of no infection, a space transportation and logistics platform.
Parting Thought:
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