I worked for a venture-funded business for a few years and received stock options as part of my compensation. I exercised some of them last year, so I own a staggering ~0.5% of all shares now. I still talk to some of my former coworkers occasionally so I know they're chugging along, but I haven't gotten any updates from the founder / management team on their financial performance since the exercise.
I want to know how things are going both to have a better idea of what the future holds and because I have a smaller batch of options I need to decide whether to exercise in the next few months. My understanding from a legal point of view based on
https://chrismercer.net/unicorns-delaware-and-private-company-financial-disclosure/ and
https://www.startupblog.com/shareholder-inspection-rights-in-delaware/ is that if push comes to shove, I may have a statutory right to request some information.
I'm curious how this usually works in practice though. For those that have started companies with outside investors, what has been your MO for reporting back to shareholders, especially to current or former employees paid in ISO's or RSU's? For those with shares in companies you've worked for that are still private, how often and in what form do you receive updates on their financial performance? f I get in touch with the management team to ask, would a balance sheet and income statement be a reasonable request? If I'm turned down after asking nicely, do I have any leverage to make a more pointed inquiry (i.e. legal threat)?
