Understanding pro rata is essential for angel investors and startup founders alike. At AngelSchool, we break down what pro rata means—a Latin term meaning “in proportion”—and explain how it applies in real-world investment scenarios. Whether you're calculating your share in a follow-on funding round or allocating dividends, pro rata ensures fair distribution based on ownership. Learn the simple formula for calculating pro rata, explore practical examples, and gain clarity on how this concept impacts your equity and capital allocation strategies in angel investing.

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