Startup Investing

Tag-Along Right

Definition

What is Tag-Along Right?

A right allowing minority holders to join a sale by major shareholders on similar terms.

Example in practice

A founder selling control must allow the small investor to tag along.

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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