How does a VC keep track of his/her investment?
Professional investors typically have a range of information rights that they negotiate for when making an investment. While not every investor will have every right (or every right with the same frequency), the types of things we’re talking about include:
- Seat on the Board of Directors
- Non-voting Board Observer Seat
- Monthly, quarterly or annual financial statements (audited or unaudited)
- Monthly, quarterly or annual narrative management reports
- Annual budgets
- “Information rights” (the ability to come into the office and ask questions and view documents)
*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *
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This article is intended for informational purposes only, and doesn't constitute tax, accounting, or legal advice. Everyone's situation is different! For advice in light of your unique circumstances, consult a tax advisor, accountant, or lawyer.