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:
- Independent member are able to diffuse hidden agendas among investors.
- Independent members are able to provide feedback to CEO by a trusted non-investor.
- 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.
- The reality is that the VCs have to give up board control too once the independents arrive!
- Entrepreneurs don’t like working for others and CEOs always have to work for the investors. The independents make the board function better.
- 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.