Asking for a friend…

An angel investor in a successful startup wants to cash out a bit in a secondary but the founders are telling him he can only cash out fully or stay in full. No partial sale allowed. But his shareholder docs show he has tag along rights to the tune of 20%. Would it rub off a founder the wrong way if the angel were to invoke that right? Presumably because the founder may then have to offer a partial sale to all exiting shareholders, some of whom may not have been aware of their tag along rights.

  • IntolerantModerate@alien.topB
    link
    fedilink
    English
    arrow-up
    1
    ·
    1 year ago

    If you have the tag rights you can execute them per the agreement, full stop. If they are taking money off table you should too.