Major Investor

Major Investor is an investor who meets a specified ownership threshold (often defined in a company’s financing documents) that entitles them to enhanced rights such as information rights, preemptive/pro rata rights, or consent rights. In preferred stock financings, Major Investor status is negotiated because it affects governance and access, and Major Investor definitions typically exclude very small holders or require continuous ownership.

author avatar
Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.