The role of a board as a group is to provide governance for the company and accountability to the management team. The typical board member is a venture capitalist that had to win the deal in a competitive round, or was appointed by a founder. That’s a bad starting relationship for effectively executing those jobs.
Plus, it’s a hard thing to do. People without operating backgrounds (at least 50% of board members I’ve seen) would have no experience doing these things at any scale.
so it's a matter of board members have little to no domain expertise or operational experience?
It seems this is just another misallocation of capital resources.
thank you, I never understand the whole company board thing. This is helping to clarify it's purpose better.
TBF it’s a tough job. But yeah, you want to bring on board members who believe in the vision and the mission of the company, but also know what a well run company looks like, and have the backbone to govern towards that.
outside of VC appointment, how do people even become board members?
