Investor Rights Agreement defined: An investor rights agreement is a venture capitalist typically expects to get the following rights associated with an investment, which are often contained in an Investor Rights Agreement: * The right to elect one or more directors to the company’s board of directors * The right to receive various reports, financial statements, and information * The right to have its stock registered for sale in a public offering at the company’s cost * The right to maintain its percentage share ownership in the company by participating in future stock issuances * The right to participate in the sale of any shares made by the founders of the company (a so-called “co-sale” right which is embodied in a separate agreement)
Above is a definition for “Investor Rights Agreement” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.
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