Redemption rights let preferred investors require the company to buy back their shares, usually after a set period, providing an exit if no sale or IPO occurs.

A co-sale right lets investors sell a proportional part of their shares alongside a founder who is selling to a third party, on the same terms.

A right of first offer requires a shareholder who wants to sell to first offer the shares to the company or existing investors before approaching outside buyers.

An option pool is equity a company reserves to grant as stock options to employees, advisors and directors, usually 10–20% of fully diluted capital.

Fully diluted share count includes all outstanding shares plus every share that could be issued from options, warrants, convertibles and the unallocated option pool.

A participation cap limits how much a participating preferred holder can collect through the double-dip of preference plus participation, usually expressed as a multiple of the original investment.

Information rights are an investor’s contractual right to receive the company’s financial statements, budgets and periodic updates after investing.

In convertible notes and SAFEs, the discount rate is the percentage reduction applied to the next round’s price per share when the instrument converts, rewarding early risk.

A rolling close lets a company accept investor commitments in stages during a single round, taking money as each investor signs rather than waiting for one final closing.

A party round is a financing round filled by many small investors with no single lead taking a large stake or setting terms.