From Dealroom · · 30s
Why VCs Fight Over Pro Rata
Coinbase delivered 53x return from Initialized Fund 1's 55x.
In brief
Coinbase delivered 53x return from Initialized Fund 1's 55x. Coinbase generated 53x return from Initialized Capital's first fund after pro rata rights allowed continued investment. Originally reported by Dealroom.
Pro Rata Rights
Initialized Capital's first fund returned 55x with distributions from 98 companies adding only 1x.
Coinbase's 53x Return
Coinbase delivered 53x return after Initialized kept pro rata through multiple rounds.
Why It Matters
Pro rata rights allow early backers to invest in breakout companies, creating power-law returns in seed investing.
In short
Coinbase generated 53x return from Initialized Capital's first fund after pro rata rights allowed continued investment.
