Startup Investing

Pre-Emption Right

Definition

What is Pre-Emption Right?

A right giving existing shareholders first opportunity to buy newly issued shares.

Example in practice

Shareholders may subscribe before the company offers shares to outsiders.

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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