VC Term Sheets – Drag-Along Provisions

Introduction

This post originally appeared as part of the “Ask the Attorney” column I am writing for VentureBeat.  Below is a longer, more comprehensive version, which is part of my ongoing series on venture capital term sheets.  Here are the issues I have addressed to date:

• common mistakes dealing with VC’s
• valuation
• liquidation preferences
• stock options
• exploding term sheets and no-shop provisions
• anti-dilution provisions
• dividends
• Board control
• protective provisions

In today’s post, I examine “drag-along” or “bring-along” provisions, which can be very tricky.

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Tags: bring-along, drag-along, drag-along provisions, drag-along rights, liquidation, liquidation preference, Michael Arrington, TechCrunch, term sheets, vc
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