Startup Investing
Drag-Along Right
Definition
What is Drag-Along Right?
A right allowing specified majority holders to require minority holders to join a company sale.
Example in practice
How This Looks in Practice
The majority accepts an acquisitionThe purchase of control or ownership of a company or business. and drags all shareholders into the transaction.
Keep learning
Related Terms
Startup Investing
Term Sheet
A preliminary document outlining the main commercial terms of a proposed investment.
Startup InvestingPre-Money Valuation
A company's agreed value immediately before a new investment.
Startup InvestingPost-Money Valuation
A company's value immediately after adding new investment capital.
Startup MetricsBurn Rate
The rate at which a company spends cash, commonly measured monthly.