Term sheet clause 13 of 25 · Investor rights
Information rights in a term sheet
In plain English: Right to regular financial information. Typical: Quarterly financials, annual budget for major investors.
Founder-friendly
Quarterly management accounts.
Investor-friendly
Heavy reporting at early stage.
What to watch for
Red flag
Monthly audited accounts at seed.
How to model it
Don't judge this clause by reading it; put numbers on it. In our workbooks it's modelled in Investor Update Builder, so you can see what it changes in your ownership or your payout before you agree.
Not legal advice. Norms vary by country and market cycle. Have a startup lawyer review your term sheet before you sign.