Legal & Compliance
Information Rights
Contractual obligations requiring a startup to share financial statements and other operational data with investors on a regular basis.
Information rights are investor protections that require a company to provide regular financial and operational reporting. Standard information rights include: quarterly unaudited financials (income statement, balance sheet, cash flow statement), annual audited financials, annual operating budget, and prompt notice of material events (lawsuits, executive departures, significant customer wins or losses). Information rights are formalized in the Investors' Rights Agreement and typically apply to investors above a minimum threshold (e.g., $500K invested). Beyond the legal obligation, proactive communication with investors — even beyond information rights requirements — builds trust and produces more helpful investors.