An investor with supra pro rata rights wants the option of increasing his percent ownership in the next round. He probably told you “We like this company so much we might want to buy more of it!” Investors who want to increase their percent ownership try to drive down the next round’s valuation. Whether or not they have supra pro rata rights.
(Full Post: http://venturehacks.com/articles/supra-pro-rata)
Babak Nivi is a co-founder of AngelList and Venture Hacks. Previously, he was an entrepreneur-in-residence at Bessemer Venture Partners and Atlas Venture. He has worked on startups including Songbird, Grockit, and Kovio. He went to school at MIT where received 2 patents and published in Science.