# Information Rights

## Quick Definition
Investor rights to receive regular financial and operational updates from the company.

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## What are Information Rights?
Information rights entitle investors to receive financial statements, board materials, budgets, and other company information. They're standard in venture deals for investors above a certain threshold.

## Typical Information Package
Monthly or quarterly financials, annual audited statements (if applicable), board meeting materials, budget and business plan, and any material developments.

## Founder Considerations
Information rights create reporting obligations. Build processes to deliver consistent updates. Good investor communication builds trust even when news isn't great.

### Formula
Standard information rights include:
- Monthly/quarterly unaudited financials
- Annual financial statements
- Annual budget within 30 days of fiscal year
- Board materials when distributed
- Notice of material events

### Example
Series A term sheet grants information rights to investors holding 5%+ of preferred stock.

### Required deliverables:
- Monthly P&L, balance sheet, cash flow within 30 days
- Quarterly board deck within 15 days
- Annual budget by January 31
- Cap table updates with any equity changes

## Related Terms
[**Most Favored Nation (MFN)**  
A provision guaranteeing an investor will receive terms at least as favorable as any subsequent investor receives.  
Learn more](/content/terms/most-favored-nation-mfn/index.html)

[**Qualified Financing**  
The minimum raise amount that triggers automatic conversion of convertible notes or SAFEs.  
Learn more](/content/terms/qualified-financing/index.html)

[**Maturity Date**  
The deadline by which a convertible note must be repaid or converted to equity.  
Learn more](/content/terms/maturity-date/index.html)

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