Agreements giving the venture capitalists the right to participate in any sale of stock that company's manager might arrange for themselves

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Participation rights give venture capitalists the right to participate in any sale of stock that the company's managers might arrange for themselves. This ensures that the venture capitalists have the opportunity to maintain their ownership stake in the company and prevent dilution of their investment. Repurchase rights give the venture capitalists the option to repurchase their shares from the company or its managers, while stock option plans give employees and managers the right to purchase company stock at a future date. Demand registration rights give the venture capitalists the right to demand that the company register its shares with the Securities and Exchange Commission, which can help to increase the liquidity of the investment.

Agreements Giving the Venture Capitalists the Right to Participate in Any