4 co-founders... who's on the board and how would you determine that ?
I have been told from potential investors that having a large board could be a potential hindrance to further investment. Any advice on this issue...has anyone gone through a similar situation?
2 comments
The CEO is typically on the board, and/or the most senior and experienced technical (co)founder in most cases, as far as tech startups are concerned.
Rarely have I seen or heard of more than 2 people in total from the actual company itself on the board for at least the first several years.
Also, from my observations, the number of founders on the board is probably roughly proportional to the amount raised, and the perceived value of the founders. IE: it wouldn't surprise me to see a startup that raised $80MM in capital to create a new hybrid commuter vehicle, with GPS-based auto pilot, to have 3 founders on the board. As long as those founders also have previous experience/wins to justify their board seats vs. just having a really good idea.
Rarely have I seen or heard of more than 2 people in total from the actual company itself on the board for at least the first several years.
Also, from my observations, the number of founders on the board is probably roughly proportional to the amount raised, and the perceived value of the founders. IE: it wouldn't surprise me to see a startup that raised $80MM in capital to create a new hybrid commuter vehicle, with GPS-based auto pilot, to have 3 founders on the board. As long as those founders also have previous experience/wins to justify their board seats vs. just having a really good idea.
You want enough founders on the board to maintain control if things go sour.