Board Observer
Also called Observer Rights
A board observer attends board meetings and sees the materials but has no vote. Investors who want visibility without full director duties often take an observer seat.
Why it matters
Observer rights give investors a window into the company without adding a voting director. Founders should still manage how many observers accumulate, since a crowded room changes how candidly a board can talk.
For example
A smaller fund that did not lead the round takes a board observer seat, so it sees the monthly board deck and joins the meetings but does not vote on decisions.
Related terms
Go deeper
See how founders actually handle this on Raising your first round, part of the Starting Up hub.
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