Tag-along
A provision letting minority shareholders join a sale on the same terms as a selling majority holder.
Why it matters
The mirror image of drag-along, and it protects small holders from being left behind when a large shareholder finds a buyer.
A worked example
A founder selling a large secondary stake triggers tag-along rights, letting other holders sell a proportional amount into the same deal.
What is typical
Standard and rarely contentious.
Related terms
Drag-along
A provision forcing minority shareholders to join a sale that has been approved by a defined majority.
Read more →Secondary
The sale of existing shares by a current shareholder, rather than the issue of new shares by the company.
Read more →Run your raise on this
VCTerminal models these terms on your real cap table, so you can see what a term sheet pays you before you sign it.
Start free