What are some of the keys to assembling a great board of directors at a company?
There is a saying in the not-for-profit world that your board members should all fall into one or more of three categories in which they can deliver: Wealth, Work or Wisdom.
In my experience, those same qualities also apply to for-profit boards:
Wealth, as in investors who can write checks and help with fundraising in future rounds;
Work, as in directors with specific skills who can be helpful in recruiting, business development, customer introductions, exit analyses, etc; and finally,
Wisdom, in the form of smart, experienced mentors who can provide sage advice to the CEO from an objective perspective.
In an ideal world all of your board members would be able to contribute in all three areas. In the real world, however, you hope for the best, but settle for the best you can get.
*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *(No tags for this post.)
Written by David S. Rose
You might also be interested in
Canada has not tapped its female angel investor potential – yet.
The female angel investor conversation has been discussed inside and out. From TechCrunch, BetaKit to the Financial Post, there have been more than a few arguments made about the lack of female representation in Canada’s early-stage investment community and the benefits of tapping into this financial resource.
One of the most common questions we get is: What are the biggest challenges and rewards of angel investing? High net worth individuals become angel investors for a number of reasons, but the opportunity to work with entrepreneurs and provide guidance to founders is typically high on the list. In this video, angel investor Chenoa Farnsworth explains why, interestingly, both the biggest
At Hyde Park Angels, we evaluate startups based on quantifiable metrics related to traction, market size, and more. But that’s not all we consider. In fact, sometimes the most important factors in determining whether we should invest are qualitative. While these can vary from deal to deal, there are a few that remain the same.
Entrepreneurs seem genuinely surprised to find that investors in Peoria or Little Rock are not willing to invest in startup companies at Silicon Valley prices. After all, they just read in TechCrunch that investors funded a company similar to theirs at an $8 million pre-money valuation!
The valuation of startup companies shouldn’t be impacted by location, should they? Guess again!
Crowdfunding is the practice of raising money for a project or venture from a large number of people utilizing an Internet website or platform. Funding from each individual can be quite small, $10 or less, although some projects have much higher minimums. Projects include films, musical recordings, new companies, products, inventions, personal causes and many others.