This article continues a series explaining key provisions in financing term sheets. This entry in the series focuses on redemption rights, which allow the investor to have the stock repurchased at the purchase price, often after some fixed period. The article explains what these rights are in more detail, why investors ask for these rights, and some points of which founders should be wary if investors ask for redemption rights.
- Summary by FizzLaw Team
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Key Term Sheet Provisions: Redemption Rights