More on Independent Board Members

Happy New Year everyone!  I hope you all have had a great holiday season.  Quick post just following up to my most recent post on independent board members.

a16z has a podcast series, and one of my CVF partners just sent me this podcast from them on independent board members.  Great quick 23 minutes.  Have a listen.

Tidbits of value from the a16z podcast:

  1.  Independent member are able to diffuse hidden agendas among investors.
  2.  Independent members are able to provide feedback to CEO by a trusted non-investor.
  3.  Makes the overall board dynamics way better as the relationship between the VCs and CEOs is just different than the relationship between the independent board members and the CEO.
  4.  The reality is that the VCs have to give up board control too once the independents arrive!
  5.  Entrepreneurs don’t like working for others and CEOs always have to work for the investors.   The independents make the board function better.
  6.  Being a board member is MUCH different than being a board observer or advisor.  Independents can start as observers/advisors but entrepreneurs need independent board members with board power.

Enjoy!