Founder and Managing Partner of Alpha Partners, Steve Brotman, recently spoke with Chris Metiko of Crunchbase about pro rata rights, which are now a multi-billion dollar segment of the VC ecosystem. In the piece titled, “What Are Pro Rata Rights And Has The Growth Of Venture Changed Them?” Mr. Brotman explains that while pro rata rights in the venture capital world are nothing new, 2021 has rewritten the book on venture investment in terms of structure and money invested. He says that early investing venture firms allow about 95 percent of pro rata rights to expire due to a lack of capital and growth round expertise. That’s where Alpha comes in. The firm partners with 600 venture firms to help them to exercise the pro rata rights they maintain in their portfolio companies. The model enables Alpha to invest in companies like Udemy, Coursera and Lime.
Read the original article featured in Crunchbase here by Chris Metinko.