Information rights
A contractual entitlement to receive regular financial and operating information about the company.
Why it matters
This defines your reporting obligations for years. Know what you have promised before you promise it to a dozen investors separately with different formats and deadlines.
A worked example
A typical clause requires quarterly unaudited financials within 45 days, an annual budget before year end, and an annual cap table.
What is typical
Granted to major investors above a threshold. A single well-run investor update satisfying everyone at once is far better than bespoke reporting.
Related terms
Preferred stock
The share class investors buy, carrying rights that common stock does not have.
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