6 terms
Rights & follow-on
What you are entitled to after the wire clears: information, the chance to keep investing, and the right to sell.
Pro-rata rights
Pre-emption rights · Participation rights
The right, but not the obligation, to invest enough in future rounds to maintain your existing percentage of the company.
Read the term →Information rights
The contractual right to receive financial statements, budgets and updates from the company on a defined schedule — rather than depending on the founder remembering to write.
Read the term →Side letter
A short separate agreement giving a specific investor rights that are not in the main round documents — most commonly pro-rata, information rights or a board observer seat.
Read the term →Right of first refusal
ROFR
The right of the company or its investors to buy shares that a shareholder wants to sell, on the same terms as the proposed third-party buyer, before that sale can proceed.
Read the term →Tag-along rights
Co-sale rights
The right to sell a proportionate part of your shareholding on the same terms whenever a founder or major shareholder sells theirs.
Read the term →Drag-along rights
A provision allowing a defined majority of shareholders to compel every other shareholder to sell on the same terms, so that a buyer can acquire 100% of the company without holdouts.
Read the term →