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Why You Don’t Want to Give Financial Information to All of Your Investors

Both Sides of the Table

There’s another issue I can add to your list of things to be aware of – information rights. Generally speaking in venture capital financings the legal documents will specify that only “major investors” (a threshold set in the agreement – which can be $500,000 investor or more). You betcha.

SEC 352
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Your Entrepreneur World Changes When You Take Money

Startup Professionals Musings

Angel and venture capital investors rarely just give you the cash, and stand back to wait for you to spend it the way you want. Both angel investors and venture capital partners like to make personal visits to your facility or a regular basis, sometimes unannounced, to see how the business is running.

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New Entrepreneurs Think Investor Money is All Fun

Startup Professionals Musings

Angel and venture capital investors rarely just give you the cash, and stand back to wait for you to spend it the way you want. Both angel investors and venture capital partners like to make personal visits to your facility or a regular basis, sometimes unannounced, to see how the business is running.

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Why I Don’t Like Board Observers

Both Sides of the Table

That’s what “information rights&# are for and you can promise the investor to meet 1-on-1 on a quarterly basis. The larger or leading investors will sometimes offer the other investors an observer right as a way to appease them and solve the political problem of deciding who should be on the board. in a company.