Tag-along rights (also called co-sale rights) let minority shareholders "tag along" when a majority shareholder sells their stake, selling their own shares to the same buyer on the same terms. It protects small holders from being stranded in a company after the major holders have exited.
Why it matters to you
Tag-along is a genuine minority-investor protection. If a founder or large investor sells out, tag-along ensures you get the chance to exit alongside them at the same price, rather than being left holding shares in a company whose key backers have walked away. It is the protective counterpart to drag-along rights.
Example: When a founder sold a large block to a new investor, tag-along rights let early retail holders sell their proportionate shares on identical terms, securing the same exit.