Investor Rights Agreement

An Investor Rights Agreement (IRA) is a contract between a company and its investors that outlines the specific rights granted to investors beyond basic equity ownership. Common provisions include information rights (access to financial statements), registration rights (ability to register shares for public sale), board representation, pro-rata rights (right to participate in future funding rounds), and anti-dilution protections. The agreement helps protect investor interests while balancing the company's operational needs. IRAs are standard in venture capital financing and are typically negotiated during funding rounds to ensure investors have appropriate oversight and protection of their investment.