Concept-of-the-week
Tag-along rights
Tag-along rights (also called co-sale rights) are the clause that lets a minority shareholder exit alongside a majority seller, on the same price and terms.
Without the right, a majority shareholder can sell a controlling stake to a third party at a premium and leave minority shareholders inside a company they no longer control. Tag-along rights prevent that outcome by giving each eligible minority shareholder the option - not the obligation - to sell their shares in the same transaction.
Full tag-along allows the minority to exit their entire holding. Pro-rata limits the exit to a proportional share of what the buyer will purchase: if a buyer caps the deal at 150 shares and three sellers want to offer 200 combined, each seller is scaled down to 75% of their intended amount.
What we’re watching
Hadrian raises $1.37B Series D
Hadrian, a startup building automated factories for precision defense components - submarine parts, munitions, autonomous systems hardware - raised $1.37B in Series D at a $7.87B valuation on August 6.
The round was co-led by WCM Investment Management, Washington Harbour Partners, Valor Equity Partners, 137 Ventures, and Baillie Gifford, with JPMorgan Chase's Strategic Investment Group as anchor co-lead through its Security and Resiliency Initiative, targeting industries the bank considers critical to US national security.
Hadrian's valuation is nearly five times its January mark. The investor mix signals a shift: institutional capital is now treating defense manufacturing as an infrastructure allocation, not a venture bet.
Source: TechCrunch
Community Office Hours
Join our next Office Hours on Employee Lifecycle Management
Managing employees on EquityList goes far beyond just adding a name to a cap table. From the moment someone joins your team to the day they leave - and everything in between - there are a lot of moving parts to get right, and the stakes are high.
In this Office Hours session, we're covering the full employee lifecycle end to end. We'll walk you through how to add employees individually or in bulk, how to set up dashboard access and configure exercise periods based on termination reason, and how to run a termination smoothly when the time comes - then open it up for your questions live.
Whether you're onboarding your first hire or managing a team of hundreds, this session will give you the confidence to handle every stage of the employee journey without missing a step.
August 26 | Wednesday | 3:00 PM IST
This week’s highlights
Vaderis Therapeutics raised $152M Series B, led by Goldman Sachs Life Sciences and TCGX Life Sciences (Source)
Whatnot raised $545M Series G at $20B valuation, led by ICONIQ Capital, Lightspeed, and Avra (Source)
Lumilens raised $700M+ (no stage disclosed), led by Atreides Management, Bain Capital Ventures, Meritech Capital, Seligman Ventures, and Spark Capital (Source)
Cambridge Aerospace raised $300M Series C at $3.4B valuation, led by DFJ Growth, with Lux Capital and Accel participating (Source)
Neros Technologies raised $250M Series C at $2.5B valuation, led by Sequoia Capital and ASTF, with Thiel Capital and Spark Capital participating(Source)
See you next week,
Team EquityList
