Thoughts on startups by investors that
fund them & entrepreneurs that run them

Blog Archives

How do startups decide who sits on the board?

A company’s board of directors is technically elected by the company’s shareholders. So before a startup receives outside funding, the board is “elected” by—and usually consists of—the founders (although it may exist in name only.)

Once a company receives its initial seed, angel or venture funding, the documents prepared for the investment will include a Shareholders Agreement that gets signed

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“Bored” of Directors Can Become Clash of Titans

Rhetoric has the power to engage or alienate, to enchant or disaffect.  Perhaps no better example exists than the term “Corporate Governance.”  Even the wonkiest law geeks like me find our eyes glazing over as soon as the term is mentioned.  Yet I’ve rarely seen entrepreneurs more fired up than when recounting war stories of startups whose

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If I join a company as a co-founder, should I ask for a board seat?

A board seat in and of itself has no particular value, and is often something to be *avoided*, rather than sought out. It doesn’t give you more cash compensation, more equity ownership or more direct control over the operating business.

The legal role of the board is to make strategic and corporate-level decisions, hire/fire the CEO, and represent all of

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