Pro rata is a Latin term meaning «in proportion» which is often used in the tech and venture capital world when it comes to deciding on how value in a company is split. Mike Vernal, a partner at Sequoia Capital, explains how it works and why it can be a consequential decision for tech founders.

Subscribe to FORBES:

Stay Connected
Forbes newsletters:
Forbes on Facebook:
Forbes Video on Twitter:
Forbes Video on Instagram:
More From Forbes:

Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.

What Does Pro Rata Mean And Why Is It Consequential To The Tech Industry? | Defined | Forbes