Definition
Someone who attends board meetings but lacks voting rights, typically a junior investor or potential future investor. They're flies on the wall with NDAs and calendars full of meetings they can't influence.
Example Usage
As a small seed investor, we negotiated for board observer rights to stay informed without taking up an actual board seat.
Origin
Corporate governance practice that became common in venture-backed companies in the 1980s-90s.
Fun Fact
Observer status is often granted to strategic investors, early investors who got squeezed out of formal seats, or associates at VC firms who are being groomed for partnership.
Source: Corporate governance and venture capital board practices
Related Terms
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See “board observer” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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