Startup Boards

An essential guide to understanding the dynamics of a startup's board of directors
 
Let's face it, as founders and entrepreneurs, you have a lot on your plate--getting to your minimum viable product, developing customer interaction, hiring team members, and managing the accounts/books. Sooner or later, you have a board of directors, three to five (or even seven) Type A personalities who seek your attention and at times will tell you what to do. While you might be hesitant to form a board, establishing an objective outside group is essential for startups, especially to keep you on track, call you out when you flail, and in some cases, save you from yourself.
 
In Startup Boards, Brad Feld--a Boulder, Colorado-based entrepreneur turned-venture capitalist--shares his experience in this area by talking about the importance of having the right board members on your team and how to manage them well. Along the way, he shares valuable insights on various aspects of the board, including how they can support you, help you understand your startup's milestones and get to them faster, and hold you accountable.
* Details the process of choosing board members, including interviewing many people, checking references, and remembering that there should be no fear in rejecting a wrong fit
* Explores the importance of running great meetings, mixing social time with business time, and much more
* Recommends being a board member yourself at some other organization so you see the other side of the equation
 
Engaging and informative, Startup Boards is a practical guide to one of the most important pieces of the startup puzzle.

FOREWORD ix
 
ACKNOWLEDGMENTS xiii
 
PART ONE: OVERVIEW 1
 
CHAPTER ONE
Introduction 3
 
CHAPTER TWO
What Is a Board? 11
 

PART TWO: BUILDING YOUR BOARD 23
 
CHAPTER THREE
Creating Your Board 25
 
CHAPTER FOUR
Recruiting Board Members 49
 
CHAPTER FIVE
The Formal Structure of the Board 63
 
CHAPTER SIX
Aligning Your Board 71
 
CHAPTER SEVEN
Is an Advisory Board Useful? 77
 
PART THREE: THE BUSINESS OF THE BOARD MEETING 85
 
CHAPTER EIGHT
The Actual Board Meeting 87
 
CHAPTER NINE
Motions and Votes 101
 
CHAPTER TEN
Legal Challenges 111
 
PART FOUR: COMMUNICATIONS 115
 
CHAPTER ELEVEN
Managing Ongoing Expectations 117
 
CHAPTER TWELVE
Trying New Things 131
 
CHAPTER THIRTEEN
Communication Confl icts 135
 
CHAPTER FOURTEEN
CEO Transitions 143
 
PART FIVE: TRANSACTIONS 151
 
CHAPTER FIFTEEN
Financings 153
 
CHAPTER SIXTEEN
Selling a Company 157
 
CHAPTER SEVENTEEN
Going Public 167
 
CHAPTER EIGHTEEN
Going Out of Business 173
 
CHAPTER NINTEEN
Conclusion 179
 
APPENDIX
 
Checklist 1: Preparing Your Board Package 183
 
Checklist 2: Conducting Your Board's Annual Assessment 185
 
Checklist 3: Question for Your Legal Counsel 187
 
Checklist 4: Should You Get Directors and Offi cers Insurance? 189
 
Checklist 5: Stock Option Grants and 409A Valuation 191
 
NOTES 195
 
INTERVIEWS 199
 
BIBLIOGRAPHY 201
 
ABOUT THE AUTHORS 203
 
INDEX 205
 
Excerpt from Startup CEO 211

An essential guide to understanding the dynamics of a startup s board of directors
Let s face it, as founders and entrepreneurs, you have a lot on your plate-getting to your minimum viable product, developing customer interaction, hiring team members, and managing the accounts/books.