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Glossary Venture Capital / Term

Preemptive Rights

Similar to rights of first refusal. The term preemptive rights refers to the right to purchase a company’s new shares before they are offered to anyone else. In term sheets the preemptive rights provision may be titled “Right to Participate Pro Rata in Future Rounds”. This is standard in term sheets.

Permanent link Preemptive Rights - Creation date 2020-03-10


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