dragalong rights

Definition

A provision forcing minority shareholders to join a sale if majority shareholders approve it, preventing holdouts from blocking acquisitions. Democracy dies in shareholder agreements.

Example Usage

Thanks to dragalong rights, even though I voted against selling to Oracle, I'm getting dragged along for the ride.

Origin

Corporate law and M&A terminology, standard in venture-backed company governance since 1980s

Fun Fact

Drag-along provisions are often paired with tag-along rights, giving shareholders both the obligation to sell and the right to participate—balanced tyranny.

Source: Venture capital term sheets and corporate governance documentation

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biotech

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full ratchet

The most aggressive anti-dilution protection where early investors' conversion price adjusts to match a down round price, regardless of how small the down round is. Financial punishment for daring to need more money.

🚀 Startup / VC

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diluted

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equity kicker

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🚀 Startup / VC

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