Usually, in the early-stage funding, the investor receives only a minority participation. However, the investor receives the right to vote for: the dissolution of the company, changes of the constitutive act which can affect the investor’s rights, a guarantee limited by a threshold, budget approval, board changes, agreements relating to intellectual property rights, dividend distribution agreement, the ESOP mechanism – employee stock option pool, sale of shares during lock-up period;
These investor rights can be found in the Shareholders Agreement, in the Reserved matters section. The section Reserved Matters can seem invasive for the founders; However, it only assures the investor that the funds are being used strictly to grow the startup.