Положение, направленное на наказание инвесторов, которые не участвуют в пропорциональном отношении в раунде финансирования, путем отмены некоторых или всех их преимущественных прав. Наиболее обременительная версия pay-to-play - это автоматическое преобразование в обыкновенные акции, которое по сути прекращает любые преимущественные права инвестора, такие как право влиять на важные управленческие решения.

A clause that is aimed at punishing investors who do not participate on a pro rata basis in a financing round, by cancelling some or all of their preferential rights. The most onerous version of pay-to-play is automatic conversion to common shares, which in essence ends any preferential rights of an investor, such as the right to influence important management decisions.

Pay to play provisions tied to dilutive financings provide that only investors that participate in the dilutive financing are entitled to the benefit of the anti-dilution formula in effect.

Pay-to-play provisions are designed to provide a strong incentive for investors to participate in future financings.

The pay to play concept is based upon requiring participation by the investor in the dilutive financing.