L3VLUP

Right of First Refusal (ROFR)

The right of the company, and then usually the investors, to buy shares a holder proposes to sell to a third party, on the same terms, before the sale goes ahead. Combined with a co-sale right it controls who may join the cap table through secondary sales, which is why founders selling some of their own shares need the investors’ consent in practice.

Keep reading

The venture capital hub

Related Venture Capital terms

Go further than reading

The written material is free. These are the ways to get it applied to your own work.

Browse the full glossary — 263 finance recruiting and technical terms, in plain English.