Deal termsFunding A “pay-to-play” provision incentivizes current investors to contribute in subsequent rounds of financing A "pay-to-play" provision in investment agreements is designed to encourage existing investors to participate in…CFO.today7 november 2023
Deal termsFunding Stock Appreciation Rights allow employees to benefit from the increase in value of the company without having to purchase the stock or pay taxes on it until the rights are exercised Stock Appreciation Rights (SARs) are a type of employee compensation linked to the performance of…CFO.today4 november 2023
Deal terms Redemption rights give investors the option to require the company to repurchase their shares Redemption rights in an investment context are provisions that give investors the option to require…CFO.today4 november 2023
Deal terms A Non-Compete Clause ensures that the company’s valuable assets do not fall into the hands of competitors A non-compete clause in an investment agreement is a provision that restricts the ability of…CFO.today4 november 2023
Deal terms Liquidation preferences determine the payout order in event of a sale or liquidation of the company A liquidation preference is a term used in venture capital contracts that determines the payout…CFO.today4 november 2023
Deal termsFunding A Term Sheet outlines the key financial and legal terms of an investment A term sheet is a non-binding agreement setting forth the basic terms and conditions under…CFO.today4 november 2023
Deal terms Piggyback rights are a opportunity for minority shareholders to benefit from the liquidity event alongside the company’s founders or principal shareholders Piggyback rights, also known as "registration rights," are provisions in investment contracts that give investors…CFO.today4 november 2023
Deal terms A Lock-up agreement prohibits insiders from selling their shares A lock-up agreement is a contractual clause typically used in the context of initial public…CFO.today4 november 2023
Deal terms Use Tag-along rights to protect minority shareholders in case of a sell of the company Tag-along rights, also known as "co-sale rights," are contractual obligations used to protect minority shareholders…CFO.today3 november 2023
Deal terms Drag-along right enabling majority shareholder to force minority shareholders to join in the sale of a company Drag-along rights are provisions found in shareholders' agreements that enable a majority shareholder to force…CFO.today3 november 2023