No One Likes To Be Left Out: VCs Require Co-Sale Rights

save yourself the blogspam click:

"Fighting Over Money

VCs generally require co-sale rights when they make an investment. This right enables them to participate in any sale or transfer of stock to a third party.

This term enables investors to avoid missing out on opportunities to liquidate their shares. The founders or a sub-set of the company’s shareholders can’t secretly find buyers willing to pay a high price for their shares and engage in the transaction without giving their VCs the right to participate."

that's the whole article...