# Why VCs Fight Over Pro Rata

> Coinbase delivered 53x return from Initialized Fund 1's 55x.
- Title: Why VCs Fight Over Pro Rata · Dealroom | Shortify
- Summary: Coinbase delivered 53x return from Initialized Fund 1's 55x. Coinbase generated 53x return from Initialized Capital's first fund after pro rata rights…
- Keywords: pro rata, initialized capital, coinbase, garry tan, y combinator, seed investing, Dealroom
- Source: Dealroom — https://dealroom.co/news/161937-why-vcs-fight-over-pro-rata-coinbase-delivered-53x-of-initialized-fund-1
- Published: 2026-10-13T10:06:20+00:00
- Read time: 1 min
- Topics: pro rata, initialized capital, coinbase, garry tan, y combinator, seed investing, startups, business
## 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.
## Key takeaway

Coinbase generated 53x return from Initialized Capital's first fund after pro rata rights allowed continued investment.