Also known as: investor information rights

Information Rights

ConceptualFundraisingLegal

Definition

Information Rights: Information rights entitle investors to receive regular financial and operational updates from the company. Typical rights include quarterly financial statements, annual budgets, and board meeting materials. Usually granted to investors above a certain ownership threshold.

Example Usage

“Our term sheet grants information rights including quarterly financials and monthly KPI dashboards.”

Common Misconceptions

All investors get information rights. Usually only major investors receive formal rights.

Information rights are negotiable. While they are, most investors expect standard information.

Startups can share anything. Companies must be careful about confidential information and insider trading rules.

Related Terms

Term Sheet

A term sheet is a non-binding document outlining the key terms of a proposed investment, including valuation, investment amount, board composition, li...

ConceptualFundraisingDocuments

Board of Directors

The board of directors is a group of individuals elected to represent shareholders and oversee company management. The board approves major decisions,...

ConceptualRolesLegal

Venture Capital

Venture capital is a form of private equity financing provided by firms (VCs) to startups with high growth potential. VCs raise funds from limited par...

FoundationalFundraising

Related Tools

Carta

Equity management and cap table software.

Visible

Investor updates and fundraising CRM.

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Information Rights

Definition

Example Usage

Common Misconceptions

Related Terms

Term Sheet

Board of Directors

Venture Capital

Related Tools

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