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Investor rights are restricted The rights of an investor in a particular company whilst generally governed by the law, can be curtailed or altered under the shareholders' agreement.
Angel investors typically want from 20 to 25 percent return on the money they invest in your company. Venture capitalists may take even more; if the product is still in development, for example, an investor may want 40 percent of the business to compensate for the high risk it is taking.
Piggyback registration rights are a form of registration rights that grants the investor the right to register his or her unregistered stock when either the company or another investor initiates a registration.
Demand registration rights entitle an investor to force a company to register shares of common stock so that the investor can sell them to the public. This effectively causes the company to undertake an IPO if the company is not yet public.
Also called tag-along rights, co-sale rights allow minority shareholders to sell their stakes in a company if a majority shareholder wishes to sell its stake in a company.
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