Community

Article

Demand Registration

Demand Registration

Demand registration is the right that lets preferred stockholders compel the company to file an SEC registration statement enabling public sale of their shares. It is typically exercisable after a 180-360 day post-IPO waiting period, limited to 1-3 demands per investor group, subject to $5M-$10M minimum offering size, and accompanied by company expense coverage. It is the most significant registration right structurally because it gives investors the affirmative ability to force a registration on their own initiative, rather than waiting for the company to act.

The mechanic of a demand registration:

  • Trigger: investor (or group of investors holding above a defined threshold) sends a written demand to the company.
  • Validit...

Comments
 
Copyright © 2026 Startups.com LLC. All rights reserved.