I am presently in the process of gaining angel investment for my startup in London. Having the right to approve our annual budget and business plan is one of the investor majority consents they want. My initial reaction was that I wanted to keep freedom and not have to get the approval, but then discovered it to be quite common. So a few questions:
a) Have any founders here had experience of this causing issues, i.e. non-consensus? Any regrets on agreeing to this right and not having tried to negotiate it out?
b) Would you agree to this being an investor director approval instead? Us two co-founders are directors so it would be a board of 3.
c) How impactful/severe is this in practice? As a startup annual plans will always be deviated on through the year as the company iterates and develops.