4 ms·
First right refusal just gives the company/current investors first dibs at any potential stock sale.
by adrr 4y ago
First right refusal just gives the company/current investors first dibs at any potential stock sale.
- ska 4y agoSome have no secondary sale clauses too. Depending where you are they may not be enforceable. Or you any have got RSU’s that aren’t saleable the way anyhow. For very small/early startups, there may not be an effective secondary market at all, let alone permission to participate in a raise.
- marcinzm 4y agoSure and that means investors are much less likely to buy the stock. They go through all the effort and then if it's a good deal someone else buys it instead. Some secondary markets will outright refuse to deal with shares that have such clauses.