Tag-Along Rights
A clause letting minority shareholders join a sale on the same terms as majority sellers.
Tag-along (co-sale) rights protect minority shareholders: if a major shareholder sells, smaller holders can “tag along” and sell their shares proportionally on equal terms. It prevents founders or large holders from exiting while leaving others stranded.
Examples
An angel exercises tag-along rights when a founder sells shares. — Tag-along protects early employees in a secondary.
How it relates to The Startup Foundry
The Foundry helps founders understand shareholder protections so agreements are fair to everyone on the cap table.