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Managing Your Startup Board?—?A Short Presentation

Both Sides of the Table

A Short Presentation I was invited to do a keynote presentation at the Khosla Ventures CEO Summit this week in Sausalito. Often these projects took 12–18 months so by the time companies shipped product they often found out that the product didn’t meet customer needs. Managing Your Startup Board?—?A Photo by Pineapple Supply Co.

Startup 234
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So, what’s a company board good for, anyway?

Berkonomics

And good board members can add real value to you and the company. Email readers, continue here…] Generative thinkers are relentless in asking questions that get to the core of an idea, often making the originator think more deeply about the effects over a longer period of time. A better company is the goal. Generative.

Company 156
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Wow! Are your relationships important!

Berkonomics

Of course, the response depends upon lots of variables, including whether the company is in a fund-raising mode (in which case the CEO may be spending up to 80% of their time on this alone). It is from over a thousand of these CEO presentations over the years that I attempt to make the following generalities.

Class 194
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What’s a company board good for, anyway?

Berkonomics

And good board members can add real value to you and the company. Email readers, continue here…] Generative thinkers are relentless in asking questions that get to the core of an idea, often making the originator think more deeply about the effects over a longer period of time. A better company is the goal. Generative.

Company 243
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Your board should protect you!

Berkonomics

They write in their investment documents that they will occupy a seat on the board for as long as they are invested in the company, thinking of this as a protection for their investment and tool for them to influence growth. Even venture capitalists who sit on boards where they have significant investments often forget this point.

Class 282
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Should board members be elected “for life?”

Berkonomics

If you elect your board members annually and for some reason aggressively change members, you will experience the steep learning curve required to get the newest board members up to speed to contribute with deep knowledge of the company and of your management style. And that’s not good. How about staggered four-year terms?

Email 156
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What do you give up when you take outside investors?

Berkonomics

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. There is no middle ground. Resetting your priorities Taking money from these sources involves resetting priorities over time.