Recruiter's Glossary

Examples: Vesting Schedule • Cap Table • Burn Rate

Tag-along Rights

Term from Venture Capital industry explained for recruiters

Tag-along rights are important protections for investors in startup companies. Think of them as a "buddy system" for selling shares - if a major investor sells their shares, other investors with tag-along rights can join in on the same terms. This helps protect smaller investors from being left behind. You might also hear these called "co-sale rights" or "piggyback rights." When reviewing resumes in venture capital, this term shows up when candidates have experience with investment agreements and protecting investor interests.

Examples in Resumes

Structured investment deals including Tag-along Rights and anti-dilution provisions

Negotiated Co-sale Rights in Series A funding rounds for technology startups

Implemented Tag-along Rights and Piggyback Rights to protect minority investor interests

Typical job title: "Venture Capital Associates"

Also try searching for:

Investment Associate VC Analyst Private Equity Associate Investment Manager Deal Manager Investment Professional

Where to Find Venture Capital Associates

Professional Networks

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Example Interview Questions

Senior Level Questions

Q: How would you structure tag-along rights to protect both majority and minority investors?

Expected Answer: Should explain how to balance interests of different investor groups, mention specific scenarios where tag-along rights become important, and discuss negotiation strategies for different company stages.

Q: What are the key considerations when implementing tag-along rights in a Series B round with existing tag-along rights from Series A?

Expected Answer: Should discuss how to handle multiple rounds of investors, explain priority ordering, and demonstrate understanding of how different rights interact across funding rounds.

Mid Level Questions

Q: Explain the difference between tag-along rights and drag-along rights.

Expected Answer: Should clearly explain that tag-along rights protect minority investors by letting them join in a sale, while drag-along rights allow majority shareholders to force minority shareholders to join in a sale.

Q: How do tag-along rights affect company exits?

Expected Answer: Should discuss how these rights can impact sale processes, timing considerations, and potential complications in exit scenarios.

Junior Level Questions

Q: What are tag-along rights and why are they important?

Expected Answer: Should explain the basic concept of how these rights protect smaller investors by allowing them to sell their shares alongside larger investors on the same terms.

Q: When would tag-along rights typically be exercised?

Expected Answer: Should describe common scenarios like when a major shareholder wants to sell their stake, or during acquisition talks.