Redemption Right is an investor right (commonly in preferred stock) that allows the holder to require the company to repurchase the investor’s shares after a certain time or upon specified conditions, subject to legal limits on available funds. In VC deals, a Redemption Right is a potential liquidity lever and negotiating tool, and Redemption Right provisions are more common in later-stage or structured rounds than in seed-stage financings.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
