Startup Investing

Drag-Along Right

Definition

What is Drag-Along Right?

A right allowing specified majority holders to require minority holders to join a company sale.

Example in practice

The majority accepts an acquisition and drags all shareholders into the transaction.

Keep learning

A preliminary document outlining the main commercial terms of a proposed investment.

A company's agreed value immediately before a new investment.

A company's value immediately after adding new investment capital.

The rate at which a company spends cash, commonly measured monthly.

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