Startup Investing

Right of First Refusal

Definition

What is Right of First Refusal?

A right to match a proposed sale of shares before they are sold to another buyer.

Example in practice

The company may match a third-party offer for an employee's shares.

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.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.