Dear startup founder,
Are you confused about the rights of the investors in your startup?

Truth is, when investors give you money, there are certain rights that they expect. Some of those rights include;

1. Drag-along rights: this is a type of economic right.A drag-along right is a provision or clause in an agreement that enables a majority shareholder to force a minority shareholder to join in the sale of a company. The majority owner doing the dragging must give the minority shareholder the same price, terms, and conditions as any other seller.

2. Rights of first refusal. The Right of First Refusal (ROFR) is a contractual right that gives an investor the option to purchase additional shares in a startup
before those shares are offered to third parties.

3. Voting rights: A voting right is the right of a shareholder of a corporation to vote on matters of corporate policy.

4. Board membership: this refers to the right of the investor to sit as a member of the company’s board.

Don’t underscore the importance of sound legal advice. You need to consult with an experienced business lawyer to understand the various rights available to the investor, how it will be shared, the extent of these rights, and the consequences of those rights.

We are here for you, Contact us on 07066990315 or 08142883732 to book a consultation session with us now!