Can I restrict who they sell the shares to?

 

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Keith Ainsworth

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19. Can I restrict who they sell the shares to?

No. You could try offering shares with restrictive conditions (for example, a requirement that they have to be sold back to internal shareholders), but venture capital companies would almost certainly walk away from the deal. Why should they tie their hands in advance? And anyway, what guarantee is there that the internal shareholders will have the money to buy when they want to sell?