Roles & People
Board of Directors
Also Known As
BoardDirectorsBoard Members
The Board of Directors is a group of individuals elected to represent shareholders and oversee major company decisions, including hiring/firing the CEO, approving funding rounds, and guiding company strategy.
What is a Board of Directors?
The board provides governance and oversight for a company. Board members have fiduciary duties to act in the best interest of shareholders. Startups typically form boards when they raise institutional funding.
Board Composition
Typical Early-Stage Board:
- 1-2 Founders
- 1-2 Investors (who led rounds)
- 0-1 Independent directors
Common Board Size: 3-5 members
Board Responsibilities
- Governance: Oversight and fiduciary duty
- CEO Management: Hire, evaluate, fire if needed
- Major Decisions: M&A, financing, strategy
- Guidance: Strategic advice and connections
- Investor Representation: Protect investor interests
Board Rights
Investors often negotiate:
- Board seat(s)
- Board observer rights
- Protective provisions
- Information rights
Studio Board Involvement
Venture studios typically:
- Take board seats in portfolio companies
- May have studio partner on board
- Provide board-level guidance even without formal seat
- Help recruit independent directors
Example Usage
“The studio partner joined the board after leading the seed investment.”