What is expected investor involvement and board governance?

Full Explanation

Post-Series A, investor involvement typically includes: 1) Board seat (attending quarterly board meetings, reviewing monthly financials, weighing in on major decisions). 2) Reporting (monthly financial updates, quarterly board packages, regular founder updates). 3) Strategic input (hiring decisions, product roadmap, go-to-market strategy). 4) Network access (introductions to customers, partners, future investors). This is normal and expected. Some founders resist, viewing it as interference; mature founders appreciate guidance and network. Board governance expectations: 1) Quarterly meetings (standard practice). 2) Monthly financials reviewed by board. 3) Board composition: typically founders, lead Series A investor, 1-2 independent board members. 4) Decision-making: major decisions (hiring CEO, M&A, major pivots) require board approval. 5) Advisory network: in addition to the board, maintain relationships with advisors who can provide counsel. Founder honesty: "We're expecting our Series A lead to take a board seat. We'll hold quarterly board meetings and provide monthly updates. Our board composition: myself as CEO, [Series A investor] as investor, and one independent board member (e.g., former CFO from similar company). We're building an advisory network of industry experts who can guide product and go-to-market decisions." This shows professionalism. Founders resistant to investor involvement, or vague about governance structure, concern investors. Governance is about alignment—investor and founder both want success, governance is how they coordinate.

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