• A venture capitalist needs to be comfortable with disclosure requirements.business man image by peter Hires Images from Fotolia.com
  
  There are no legal disclosure requirements for individual venture capital investors prior to a venture-backed firm going public. However, once an initial public offering, or IPO, is on the table, the venture capitalist faces numerous disclosure requirements including detailing of the investor's name and address, along with salary information and real estate transactions executed with the company.
  
  

Significant Shareholding

• If the venture capitalist owns more than 10 percent of the outstanding issued shares, the prospectus must list his name and address. In addition, it must also list the number of shares owned.
  
  

Venture Capitalist Who is Also a Director

• If the venture capitalist also acts as a director of the company, the prospectus must state the salary that the company pays to the investor.
  
  

Real Estate

• If the venture capitalist has sold any real estate to the company within two years of the prospectus, this transaction must be disclosed.
  
  

Taxes

• The IRS requires disclosure of the capital gain made on shares sold in, or after, an IPO.tax defined image by Christopher Walker from Fotolia.com
  
  If an investor sells shares in the IPO, then she must disclose any capital gain made on the investment to proper tax authorities.