Business Pitch Dictionary by pitch.dog
Term-sheet control & investor rights · Core

Co-sale right

Also called: tag-along, co-sale

ELI5

Investors can sell alongside a founder.

Used in conversation

“The co-sale right applies to founder transfers.”

Definition

A right allowing an investor to participate proportionally in certain shareholder sales.

Here “Co-sale right” means: A right allowing an investor to participate proportionally in certain shareholder sales.

Pitch context

You will see “Co-sale right” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches term-sheet control & investor rights.

Why it matters: In term-sheet control & investor rights, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

  • Tag-along rightThe search label “Co-sale right” can route to both entries.
Sources & evidence · 5

Direct term-level sources and supporting source families.