Who benefits from Drag-along Rights? What is the consequence of Tag-along Rights? Why do preferred shareholders want to have a Right of First Refusal?
Let’s assume you founded a biotech company and closed your first financing round. To keep it simple, let’s say the investors value your company at $5 Million premoney and invest $5 Million, which results in a $10 Million postmoney valuation. In return for their investment the…
“8/10 startups fail!”
But is this actually true? And why do they fail?
Cambridge Associates (CA) tracked the performance of 27,000 venture-backed startups over 20 years. The study concluded that the…