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IPO Participation Rights

IPO Participation Rights defined: IPO participation rights are often sought by pre-IPO venture capitalist investors in order to take advantage of escalating first day trading prices when the company conducts an initial public offering. These participation rights, whether in the form of a firm option or a best efforts undertaking, grant the recipient the right to purchase shares offered in the company’s IPO on the same terms as other IPO participants.

Above is a definition for “IPO Participation Rights” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.

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