The term ‘registration right’ refers to the ability of an investor (who owns restricted stock) to require a company to go public so that the investor can sell their shares. There are two primary forms of registration rights: “piggyback”, which allow investors to have their shares included in a registration (IPO) that is currently in the planning stages by the company and “demand” which allow the investor to require a company to go public even if they’re not planning to do so in the near future.Before you sign a term sheet it is imperative that you understand the rights that your potential investors expect—do not agree to terms that you do not understand or have not discussed with your council. The last thing you want to have happen is an investor demands that you go public, and you are not ready or prepared to go public.