

No One Likes To Be Left Out: VCs Require Co-Sale Rights - markpeterdavis
http://www.markpeterdavis.com/getventure/2009/08/no-one-likes-to-be-left-out-cosale-rights.html

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jacquesm
save yourself the blogspam click:

"Fighting Over Money

VCs generally require co-sale rights when they make an investment. This right
enables them to participate in any sale or transfer of stock to a third party.

This term enables investors to avoid missing out on opportunities to liquidate
their shares. The founders or a sub-set of the company’s shareholders can’t
secretly find buyers willing to pay a high price for their shares and engage
in the transaction without giving their VCs the right to participate."

that's the whole article...

