Yesterday, renowned investor Fred WIlson of Union Square Ventures observed in blog post that fewer founders in today’s go-go market have been honoring what are called pro rata rights, or the right of an earlier investor in a company to maintain the percentage that he or she (or their venture firm) owns as that company matures and takes on more funding.

If a company isn’t doing well, investors aren’t necessarily interested in maintaining the same ownership percentage they once enjoyed in a company, but when it’s clearly breaking away from the pack, it means a lot. If an investor’s 10 percent take becomes a three percent stake over a startup’s subsequent rounds of funding and that startup sells for a billion dollars, that’s a difference

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