Board observer
A right to attend board meetings without a vote.
Why it matters
Lower cost than a board seat, but it still means another party in the room for every hard conversation. Observer seats accumulate quietly across rounds.
A worked example
A Series A lead takes a board seat while a large follow investor takes an observer seat.
What is typical
Common for significant non-lead investors. Worth capping the total number so the board does not become an audience.
Related terms
Information rights
A contractual entitlement to receive regular financial and operating information about the company.
Read more →Lead investor
The investor who sets the terms, does the deepest diligence and usually takes the largest allocation.
Read more →Run your raise on this
VCTerminal models these terms on your real cap table, so you can see what a term sheet pays you before you sign it.
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