How pro rata works in venture capital deals

Jason Rowley is a venture capital and technology reporter for Crunchbase News. To the uninitiated, startup fundraising can be confusing. And even some of the resources designed to be approachable for the newcomer often raise more questions than they answer. So we've launched a series called "A Startup Takes Flight" to simply explain the dynamics of fundraising and deal terms. To do so, we're following two entrepreneurs who started a company and raised some money from investors.