A Pay-to-Play provision is often negotiated within the Anti-Dilution Protection. This is a provision that will encourage investors to fully participate to the full ratio rate that is outlined in the provision in the financing of a venture – if not they will loose additional rights like the Anti-Dilution Provision.

Pay-to-Play: As far as individual Investors do not participate at later financing rounds in order to not lose their pro rata participation in the Company, they will lose the agreed anti-dilution protection (pay-to-play).

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