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What is Investor Rights Agreement?

Definition

Investor Rights Agreement

An Investor Rights Agreement (IRA) is a contract granting investors information rights, pro-rata rights, registration rights, and preemptive rights.

Detailed Deep Dive

An Investor Rights Agreement (IRA) defines the reporting obligations and equity protections a startup must provide, serving as a core document in priced venture financings.

Frequently Asked Questions

Q:What is the primary purpose of an IRA?

To establish the long-term rights and reporting requirements the startup must provide to investors.

Q:What are information rights under an IRA?

The startup's obligation to deliver audited financials, monthly reports, and annual budgets to investors.

Quick Facts

  • CategoryLegal
  • Key ApplicationPriced round close documentation and investor protections

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