Mastering The suitable Of First Refusal In Startup Investment Rounds
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For example, consider a situation the place a founder needs to sell a portion of their shares to fund personal tasks. The investor, holding a ROFR, has the option to buy these shares first. If the terms are too restrictive, the founder may find it challenging to promote their shares, affecting private financial planning. Conversely, if the terms are too lenient, the investor might miss the chance to extend their stake at a good price.
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