The Sparring Partner
The Sparring Partner
The Sparring Partner
Episode 8 - How to negotiate a drag-along clause with VC's
3 minutes Posted Nov 4, 2022 at 4:29 pm.
0:00
3:29
Download MP3
Show notes

Have you ever asked yourself what a "drag-along" clause in an investment agreement means? (It sounds a bit harsh and it can be if it's not balanced properly.)

In this episode we will explain what "drag-along" means and make some suggestions on how to negotiate it from founders perspective. 

Here is a small snippet: "The drag-along clause is an important controlling provision. It gives power to either certain shareholders or class of investors to control and influence significant events like for example the sale of the company. "