Protecting Angels: The Supra Pro-Rata Right

One of the newer features in early stage financing is a supersized pro-rata right, which permits early stage investors to invest in later rounds to increase the overall size of their holdings. You can read a great comment on Venture Hacks here.

While there are some questions about how this incents investors in later rounds, I believe it can be a useful way to calm some angel concerns about future dilution. The feature hasn't gained hold here, but if it brings some angels that are hovering back to the investing table, I'm in.