Right of First Refusal (ROFR)

The Right of First Refusal (ROFR) is a contractual right for companies to purchase any shares that shareholders want to sell before the shares are offered to outside buyers.


For example, VCs are usually given a Right of First Refusal after an initial round of financing in a startup to purchase any shares desired to be sold by founders.

Read Kevin's Silicon Valley review of an episode he suspects a Right of First Refusal was exercised.

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