PrivateTechSharesClawback
Also called: clawback provision
In one line
A contractual right for the company to reclaim equity or gains under certain conditions, such as leaving to join a competitor.
In plain English
A clawback lets the company take back shares, options or even realised profits if you breach agreed terms — for example a non-compete or bad-leaver clause. It's a string attached to your equity.
If you were explaining it to a 5-year-old
A rule that says the club can take your chocolate back if you break the club's rules after leaving.
Why it matters when you sell
A clawback can undo a sale's benefit or restrict what you can do with shares, so check for one before counting on your equity.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.