3 ms·
Is it not reasonable to ask for a seat in every investment?
by bilsbie 2y ago
Is it not reasonable to ask for a seat in every investment?
- codezero 2y agoVery few of the startups I’ve worked for have given board seats before Series B.
- BlandDuck 2y agoToo many investors, too few seats
- bix6 2y agoA board seat? Absolutely not, you’re a minor investor. A pro rata opportunity? Maybe but why wrangle 50 angels when you can have 2 firms cover it?
- hellcow 2y agoA general rule of thumb is that you have 3 board members at the seed (1 non-CEO founder, the CEO which is typically another founder, and the lead investor). So you have 1 seat available for investors, whereas you may take 5-20 checks. Not everyone is getting a seat. At the A you usually expand to 5, adding the lead of the A round and an independent board member. Beyond that, it’s common for the earlier investors to get replaced on the board in future rounds and maintain observer rights.
- algo_trader 2y agoWhat happens if your "lead" angels want to put money but not a board seat?
- bcantrill 2y agoIf you are taking truly no institutional capital, it's a party round -- and unless you have a repeat founder that knows exactly what they're doing (and often even then!), it's a huge red flag.
- toomuchtodo 1y agohttps://techcrunch.com/2022/08/31/lets-talk-about-party-rounds/ https://techcrunch.com/2022/08/31/lets-talk-about-party-roun...