SlideShare ist ein Scribd-Unternehmen logo
1 von 43
Downloaden Sie, um offline zu lesen
!1
Mark Suster
Managing Partner,
Upfront Ventures
Managing Your
Startup Board
Many entrepreneurs think about boards in the traditional
sense as providing “oversight” to their activities.
Shareholders
Board
Executives
2
3
And of course this is
the legal & fiduciary
role of a board
Shareholders
Board
Executives
}
4
But if you want to be truly effective as a founder you
should think more about how YOU manage the BOARD.
Board
Executives
Make your board an
extended part of your
executive team:
super-connected,
free interns.
"I can always get money.
Where else can I get very
connected and powerful
people to do work for me?”
!5
- Founder
Photo by Brittany Simuangco on Unsplash6
How boards initially see you - it’s a bit like new parents -
it’s not adversarial at all
• Unconditional love
• A sense of responsibility
• An important role in
“oversight”
• Define their own image
by your success
7
As you grow what you think
you should do & what the
board thinks can diverge
8
Ultimately it’s up to you to take
appropriate risks - but you
must then manage the board
The Continuous Board
A different way to think about
managing your board
!9 Photo by Sasha • Stories on Unsplash
Board meetings are how most founders
think about board interactions
but they're actually the least valuable
part of your board relationship
A great board is a
highly-engaged group
who knows your
business intimately
If you build trust they’re
the only people you can
share most sensitive
decisions with
Many founders treat boards as administration functions that solely
receive quarterly updates. Let’s call this the “waterfall board.”
Time
Research
Design
Build
Test
Deploy
Waterfall
Software
Development
User Feedback
Waterfall
Board
Q2
Q3
Q4
Q1
BOD
Update
BOD
Update
BOD
Update
BOD
Update
The “continuous board" approach involves more frequent interactions –
 call / text / email at any time for quick input to iterate and course correct.
Continuous
involvement makes
your board feel
knowledgable & take
ownership of decisions
Building a High-Functioning
Board
!15
Each member of a high functioning board…
- Knows each other personally. Has a working relationship
where they can resolve differences of opinions
- Truly understands the underlying businesses. Knows strategy,
execution & financial metrics
Each member of a high functioning board…
- Knows each other personally. Has a working relationship where they can
resolve differences of opinions
- Finds this board assignment important relative to their other
time commitments
Each member of a high functioning board…
- Knows each other personally. Has a working relationship where they can
resolve differences of opinions
- Truly understands the underlying businesses. Knows strategy, execution
& financial metrics
- Doesn’t have incentives that are misaligned with the
company, its shareholders or other board members
Each member of a high functioning board…
- Knows each other personally. Has a working relationship where they can
resolve differences of opinions
- Truly understands the underlying businesses. Knows strategy, execution
& financial metrics
- Finds this board assignment important relative to their other time
commitments
- Knows it’s his or her fiduciary obligation to serve interests of
the company first & foremost
Each member of a high functioning board…
- Knows each other personally. Has a working relationship where they can
resolve differences of opinions
- Truly understands the underlying businesses. Knows strategy, execution
& financial metrics
- Finds this board assignment important relative to their other time
commitments
- Doesn’t have incentives that are misaligned with the company, its
shareholders or other board members
Ultimately it’s in your interest to
invest in creating these working
relationships - not just with you but
amongst non-exec board members.
A board that knows and likes each
other is more likely to resolve hard
conflicts.
• Schedule board meals / social time
• Encourage non-exec board sessions
• Help plan non-exec board calls
Building relationships takes effort
Board Members
Source: Mark Suster, Both Sides of the Table
Your board will increase over time and it’s highly likely you won’t
retain a board majority (and that’s ok)
Time
Round
Seed
• 2 Founders
• Maybe Seed
Investor
3 Person
D+
• 1-2 Founders
• 3 VC Investors
• 2 Independent
• 1-2 Board
Observers
7 Person
B
• 2 Founders
• A + B Investor
• 2 Independent
or common
5 Person
Founder Controlled Independent or Investor Controlled
What makes a great Independent Board Director?
A Good Mentor
Industry Experience
Local
Has Skin in the Game
Time to Commit
Startup Experience
An Honest BrokerThere in Good Times & Bad
Diplomatic
Source: Mark Suster, Both Sides of the Table
Board Meetings
!27
Photo by Pineapple Supply Co. on Unsplash
If you ask your board about your logo or brand colors,
they will debate it for 30 minutes
…if you do this, that’s on you
Executive Management
• Strategy, monthly budgets, hiring / firing, financial results
• Sales, marketing, pricing, product, support, HR, finance
It’s your job to “run the company” and not let your board micro-manage
operations. It’s your job to keep board meetings “at board level.”
Source: Mark Suster, Both Sides of the Table
Executive Management
Board of Directors
• Strategy, monthly budgets, hiring / firing, financial results
• Sales, marketing, pricing, product, support, HR, finance
• Annual budget
• Strategy & performance
• Fund raising, M&A, audit, executive compensation
• Exec team hiring / firing
A board’s role is to provide oversight of the company on
behalf of all shareholders.
Source: Mark Suster, Both Sides of the Table
Executive Management
Board of Directors
Investor Governance
• Strategy, monthly budgets, hiring / firing, financial results
• Sales, marketing, pricing, product, support, HR, finance
• Annual budget
• Strategy & performance
• Fund raising, M&A, audit, executive compensation
• Exec team hiring / firing
• Fund raising, M&A, debt
• Scope and structure of business
Some key decisions also require approval from shareholder
groups, beyond board approval.
Source: Mark Suster, Both Sides of the Table
PresentDebate
In thinking about how to run any individual board meeting it’s
important that you understand what you’re trying to achieve
Of course each meeting can be a
combination of both activities
Inform
Decide
It’s equally important that you know your goal for the meeting. Are
you seeking to make major decisions or to align board members?
Not every board
meeting requires a big
decision to be made
PresentDebate
Inform
Decide
Filibuster
A common mistake is to spend BOD meeting presenting more
materials than a group can digest.
A better use of time is to debate the most strategic topics being
weighed by the exec team, tapping your directors’ collective wisdom.
PresentDebate
Inform
Decide
Advice
PresentDebate
Inform
Decide
There are times where exec teams require decisions and want board
sign-off to underline a key move you plan to make.
Approval
• M&A
• Capital Raise
• Annual Budget
• Hire / Fire Critical Executives
There are times when you really need the board engaged in an
existential question
PresentDebate
Inform
Decide
Huge, Strategic
Decisions
If you have four board meetings a year you can run
different playbooks based on the board meeting
Q2 Q3 Q4Q1
• Next Year’s Budget
• Detailed meeting with
heavy debate
• Broader exec teams
attend / present
• Board lunch / dinner
• Strategy session
• Board only
• Update session /
deep dive on
business
• Broader exec teams
attend / present
Example
Boards. At times your best
cheerleaders, coaches, mentors and
disappointed mom & dad.
Remember that board members have
personal identity tied up in your
successes & setbacks. They aren’t
rooting for failure.
Photo by Brittany Simuangco on Unsplash41
But even your biggest
champions have oversight
responsibilities to encourage
what they ultimately believe
is right, which isn’t always
what you want to do.
If you proactively communicate
with and manage your board
you’re much more likely to
stay in sync.
!43
Mark Suster
Managing Partner,
Upfront Ventures
Managing Your
Startup Board
Thank You

Más contenido relacionado

Was ist angesagt?

How to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio modelHow to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio modelDave McClure
 
Startup Studios - Innovating Innovation White Paper Select Slides by Enhance
Startup Studios - Innovating Innovation White Paper Select Slides by EnhanceStartup Studios - Innovating Innovation White Paper Select Slides by Enhance
Startup Studios - Innovating Innovation White Paper Select Slides by EnhanceAlper Celen
 
Business Plan and Entrepreneurship Toolkit - Framework, Best Practices and Te...
Business Plan and Entrepreneurship Toolkit - Framework, Best Practices and Te...Business Plan and Entrepreneurship Toolkit - Framework, Best Practices and Te...
Business Plan and Entrepreneurship Toolkit - Framework, Best Practices and Te...Aurelien Domont, MBA
 
Blueprint for Executive Hiring
Blueprint for Executive HiringBlueprint for Executive Hiring
Blueprint for Executive HiringGreylock Partners
 
Leadership and Managerial Skills Toolkit - Framework, Best Practices and Temp...
Leadership and Managerial Skills Toolkit - Framework, Best Practices and Temp...Leadership and Managerial Skills Toolkit - Framework, Best Practices and Temp...
Leadership and Managerial Skills Toolkit - Framework, Best Practices and Temp...Aurelien Domont, MBA
 
How to make an investor pitch deck that really works
How to make an investor pitch deck that really worksHow to make an investor pitch deck that really works
How to make an investor pitch deck that really worksDeck Rooster
 
The Wealthfront Equity Plan (Stanford GSB, March 2016)
The Wealthfront Equity Plan (Stanford GSB, March 2016)The Wealthfront Equity Plan (Stanford GSB, March 2016)
The Wealthfront Equity Plan (Stanford GSB, March 2016)Adam Nash
 
Preseed pitch deck template
Preseed pitch deck templatePreseed pitch deck template
Preseed pitch deck templateKirby Winfield
 
24 Awesome Infographic Ideas to Inspire Your Next Beautiful Creation
24 Awesome Infographic Ideas to Inspire Your Next Beautiful Creation24 Awesome Infographic Ideas to Inspire Your Next Beautiful Creation
24 Awesome Infographic Ideas to Inspire Your Next Beautiful CreationPiktochart
 
Laicos Startup Studio Pitch Deck
Laicos Startup Studio Pitch Deck Laicos Startup Studio Pitch Deck
Laicos Startup Studio Pitch Deck Ryan J. Negri
 
Founders Factory overview August
Founders Factory overview AugustFounders Factory overview August
Founders Factory overview AugustTechMeetups
 
Building Startups: the "3rd co-founder model"
Building Startups: the "3rd co-founder model"Building Startups: the "3rd co-founder model"
Building Startups: the "3rd co-founder model"eFounders
 
Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)Dave McClure
 
Management Consulting Toolkit - Framework, Best Practices and Templates
Management Consulting Toolkit - Framework, Best Practices and TemplatesManagement Consulting Toolkit - Framework, Best Practices and Templates
Management Consulting Toolkit - Framework, Best Practices and TemplatesAurelien Domont, MBA
 
How to Create the Perfect Startup Pitch Deck
How to Create the Perfect Startup Pitch DeckHow to Create the Perfect Startup Pitch Deck
How to Create the Perfect Startup Pitch DeckEliott Harfouche
 
Post Merger Integration Toolkit - Framework, Best Practices and Templates
Post Merger Integration Toolkit - Framework, Best Practices and TemplatesPost Merger Integration Toolkit - Framework, Best Practices and Templates
Post Merger Integration Toolkit - Framework, Best Practices and TemplatesAurelien Domont, MBA
 
Guest lecture corporate venture capital (herman kienhuis)
Guest lecture corporate venture capital (herman kienhuis)Guest lecture corporate venture capital (herman kienhuis)
Guest lecture corporate venture capital (herman kienhuis)Herman Kienhuis
 
Gorilla Labs - Venture Builder
Gorilla Labs - Venture BuilderGorilla Labs - Venture Builder
Gorilla Labs - Venture BuilderNikhil Jacob
 

Was ist angesagt? (20)

How to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio modelHow to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio model
 
Startup Studios - Innovating Innovation White Paper Select Slides by Enhance
Startup Studios - Innovating Innovation White Paper Select Slides by EnhanceStartup Studios - Innovating Innovation White Paper Select Slides by Enhance
Startup Studios - Innovating Innovation White Paper Select Slides by Enhance
 
Business Plan and Entrepreneurship Toolkit - Framework, Best Practices and Te...
Business Plan and Entrepreneurship Toolkit - Framework, Best Practices and Te...Business Plan and Entrepreneurship Toolkit - Framework, Best Practices and Te...
Business Plan and Entrepreneurship Toolkit - Framework, Best Practices and Te...
 
Blueprint for Executive Hiring
Blueprint for Executive HiringBlueprint for Executive Hiring
Blueprint for Executive Hiring
 
Leadership and Managerial Skills Toolkit - Framework, Best Practices and Temp...
Leadership and Managerial Skills Toolkit - Framework, Best Practices and Temp...Leadership and Managerial Skills Toolkit - Framework, Best Practices and Temp...
Leadership and Managerial Skills Toolkit - Framework, Best Practices and Temp...
 
How to make an investor pitch deck that really works
How to make an investor pitch deck that really worksHow to make an investor pitch deck that really works
How to make an investor pitch deck that really works
 
The Wealthfront Equity Plan (Stanford GSB, March 2016)
The Wealthfront Equity Plan (Stanford GSB, March 2016)The Wealthfront Equity Plan (Stanford GSB, March 2016)
The Wealthfront Equity Plan (Stanford GSB, March 2016)
 
Startup Advisory Boards
Startup Advisory BoardsStartup Advisory Boards
Startup Advisory Boards
 
Culture
CultureCulture
Culture
 
Preseed pitch deck template
Preseed pitch deck templatePreseed pitch deck template
Preseed pitch deck template
 
24 Awesome Infographic Ideas to Inspire Your Next Beautiful Creation
24 Awesome Infographic Ideas to Inspire Your Next Beautiful Creation24 Awesome Infographic Ideas to Inspire Your Next Beautiful Creation
24 Awesome Infographic Ideas to Inspire Your Next Beautiful Creation
 
Laicos Startup Studio Pitch Deck
Laicos Startup Studio Pitch Deck Laicos Startup Studio Pitch Deck
Laicos Startup Studio Pitch Deck
 
Founders Factory overview August
Founders Factory overview AugustFounders Factory overview August
Founders Factory overview August
 
Building Startups: the "3rd co-founder model"
Building Startups: the "3rd co-founder model"Building Startups: the "3rd co-founder model"
Building Startups: the "3rd co-founder model"
 
Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)
 
Management Consulting Toolkit - Framework, Best Practices and Templates
Management Consulting Toolkit - Framework, Best Practices and TemplatesManagement Consulting Toolkit - Framework, Best Practices and Templates
Management Consulting Toolkit - Framework, Best Practices and Templates
 
How to Create the Perfect Startup Pitch Deck
How to Create the Perfect Startup Pitch DeckHow to Create the Perfect Startup Pitch Deck
How to Create the Perfect Startup Pitch Deck
 
Post Merger Integration Toolkit - Framework, Best Practices and Templates
Post Merger Integration Toolkit - Framework, Best Practices and TemplatesPost Merger Integration Toolkit - Framework, Best Practices and Templates
Post Merger Integration Toolkit - Framework, Best Practices and Templates
 
Guest lecture corporate venture capital (herman kienhuis)
Guest lecture corporate venture capital (herman kienhuis)Guest lecture corporate venture capital (herman kienhuis)
Guest lecture corporate venture capital (herman kienhuis)
 
Gorilla Labs - Venture Builder
Gorilla Labs - Venture BuilderGorilla Labs - Venture Builder
Gorilla Labs - Venture Builder
 

Ähnlich wie Managing Your Startup Board

Ceo Presentation Mgd
Ceo Presentation   MgdCeo Presentation   Mgd
Ceo Presentation MgdMDaigneault
 
Steer towards success: What very successful portfolio company boards do
Steer towards success: What very successful portfolio company boards doSteer towards success: What very successful portfolio company boards do
Steer towards success: What very successful portfolio company boards doLeslie S. Pratch
 
Silicon Catalyst presents Ryan Howard on Protecting Yourself as a Startup Fou...
Silicon Catalyst presents Ryan Howard on Protecting Yourself as a Startup Fou...Silicon Catalyst presents Ryan Howard on Protecting Yourself as a Startup Fou...
Silicon Catalyst presents Ryan Howard on Protecting Yourself as a Startup Fou...lpchao
 
Board Meeting- John P.Ryan
Board Meeting- John P.RyanBoard Meeting- John P.Ryan
Board Meeting- John P.RyanCGTI
 
Manage to lead - board development and operations v2
Manage to lead  - board development and operations v2Manage to lead  - board development and operations v2
Manage to lead - board development and operations v2IntelliVen
 
Protecting yourself as a founder - Ryan Howard
Protecting yourself as a founder - Ryan HowardProtecting yourself as a founder - Ryan Howard
Protecting yourself as a founder - Ryan HowardVator
 
How to get what you want (and move -- fast -- when you don't)
How to get what you want (and move -- fast -- when you don't)How to get what you want (and move -- fast -- when you don't)
How to get what you want (and move -- fast -- when you don't)Leslie S. Pratch
 
TheUltimateGuideToBuildingYourBoard
TheUltimateGuideToBuildingYourBoardTheUltimateGuideToBuildingYourBoard
TheUltimateGuideToBuildingYourBoardRachel Muir, CFRE
 
Business Advice Alternatives
Business Advice AlternativesBusiness Advice Alternatives
Business Advice AlternativesGreg Vacek
 
Vistage Chair Brochure
Vistage Chair BrochureVistage Chair Brochure
Vistage Chair BrochureMonica Hayes
 
1 - Vistage Chair Brochure
1 - Vistage Chair Brochure1 - Vistage Chair Brochure
1 - Vistage Chair BrochureGenevieve Rohan
 
Redirecting Boards: A New Vision of Governance
Redirecting Boards: A New Vision of GovernanceRedirecting Boards: A New Vision of Governance
Redirecting Boards: A New Vision of GovernanceLauren-Glenn Davitian
 
Effective boards presentation
Effective boards presentationEffective boards presentation
Effective boards presentationDavid Brown
 

Ähnlich wie Managing Your Startup Board (20)

Ceo Presentation Mgd
Ceo Presentation   MgdCeo Presentation   Mgd
Ceo Presentation Mgd
 
Steer towards success: What very successful portfolio company boards do
Steer towards success: What very successful portfolio company boards doSteer towards success: What very successful portfolio company boards do
Steer towards success: What very successful portfolio company boards do
 
What Exceptional Boards Do
What Exceptional Boards DoWhat Exceptional Boards Do
What Exceptional Boards Do
 
Silicon Catalyst presents Ryan Howard on Protecting Yourself as a Startup Fou...
Silicon Catalyst presents Ryan Howard on Protecting Yourself as a Startup Fou...Silicon Catalyst presents Ryan Howard on Protecting Yourself as a Startup Fou...
Silicon Catalyst presents Ryan Howard on Protecting Yourself as a Startup Fou...
 
Board Meeting- John P.Ryan
Board Meeting- John P.RyanBoard Meeting- John P.Ryan
Board Meeting- John P.Ryan
 
Manage to lead - board development and operations v2
Manage to lead  - board development and operations v2Manage to lead  - board development and operations v2
Manage to lead - board development and operations v2
 
Protecting yourself as a founder - Ryan Howard
Protecting yourself as a founder - Ryan HowardProtecting yourself as a founder - Ryan Howard
Protecting yourself as a founder - Ryan Howard
 
Divide and Conquer
Divide and ConquerDivide and Conquer
Divide and Conquer
 
How to run a board meeting
How to run a board meetingHow to run a board meeting
How to run a board meeting
 
How to get what you want (and move -- fast -- when you don't)
How to get what you want (and move -- fast -- when you don't)How to get what you want (and move -- fast -- when you don't)
How to get what you want (and move -- fast -- when you don't)
 
130210 NYSAR Boardology
130210 NYSAR   Boardology130210 NYSAR   Boardology
130210 NYSAR Boardology
 
TheUltimateGuideToBuildingYourBoard
TheUltimateGuideToBuildingYourBoardTheUltimateGuideToBuildingYourBoard
TheUltimateGuideToBuildingYourBoard
 
Business Advice Alternatives
Business Advice AlternativesBusiness Advice Alternatives
Business Advice Alternatives
 
Vistage Chair Brochure
Vistage Chair BrochureVistage Chair Brochure
Vistage Chair Brochure
 
1 - Vistage Chair Brochure
1 - Vistage Chair Brochure1 - Vistage Chair Brochure
1 - Vistage Chair Brochure
 
Redirecting Boards: A New Vision of Governance
Redirecting Boards: A New Vision of GovernanceRedirecting Boards: A New Vision of Governance
Redirecting Boards: A New Vision of Governance
 
The Pit Stop Leader
The Pit Stop Leader The Pit Stop Leader
The Pit Stop Leader
 
Effective boards presentation
Effective boards presentationEffective boards presentation
Effective boards presentation
 
C-Suite Peer Advisory Group United Arab Emirates
C-Suite Peer Advisory Group United Arab EmiratesC-Suite Peer Advisory Group United Arab Emirates
C-Suite Peer Advisory Group United Arab Emirates
 
Informal Board of Advisors
Informal Board of AdvisorsInformal Board of Advisors
Informal Board of Advisors
 

Mehr von Mark Suster

Funding in the time of Corona Virus
Funding in the time of Corona VirusFunding in the time of Corona Virus
Funding in the time of Corona VirusMark Suster
 
Seed stage 2019 final
Seed stage 2019   finalSeed stage 2019   final
Seed stage 2019 finalMark Suster
 
Is vc still a thing final
Is vc still a thing   finalIs vc still a thing   final
Is vc still a thing finalMark Suster
 
Staff at vc firms
Staff at vc firmsStaff at vc firms
Staff at vc firmsMark Suster
 
ICO 2.0 Summit - Keynote Presetnation
ICO 2.0 Summit - Keynote PresetnationICO 2.0 Summit - Keynote Presetnation
ICO 2.0 Summit - Keynote PresetnationMark Suster
 
Upfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC SurveyUpfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC SurveyMark Suster
 
Upfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deckUpfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deckMark Suster
 
Fundstrat Bitcoin & Blockchain presentation for Upfront Summit
Fundstrat Bitcoin & Blockchain presentation for Upfront SummitFundstrat Bitcoin & Blockchain presentation for Upfront Summit
Fundstrat Bitcoin & Blockchain presentation for Upfront SummitMark Suster
 
Upfront Ventures VC Survey 2017
Upfront Ventures VC Survey 2017Upfront Ventures VC Survey 2017
Upfront Ventures VC Survey 2017Mark Suster
 
Upfront LP Survey of the Venture Capital & Startup Industry
Upfront LP Survey of the Venture Capital & Startup IndustryUpfront LP Survey of the Venture Capital & Startup Industry
Upfront LP Survey of the Venture Capital & Startup IndustryMark Suster
 
Upfront State of the VC & Tech Industry 2017
Upfront State of the VC & Tech Industry 2017Upfront State of the VC & Tech Industry 2017
Upfront State of the VC & Tech Industry 2017Mark Suster
 
Final LA tech and venture landscape
Final LA tech and venture landscapeFinal LA tech and venture landscape
Final LA tech and venture landscapeMark Suster
 
Final san diego venture group keynote 2016
Final san diego venture group keynote   2016Final san diego venture group keynote   2016
Final san diego venture group keynote 2016Mark Suster
 
Final upfront lp survey data 2016
Final upfront lp survey data 2016Final upfront lp survey data 2016
Final upfront lp survey data 2016Mark Suster
 
VC survey data 2016
VC survey data 2016VC survey data 2016
VC survey data 2016Mark Suster
 
Upfront vc analysis 2016
Upfront vc analysis 2016Upfront vc analysis 2016
Upfront vc analysis 2016Mark Suster
 
Final venture outlook 2016
Final venture outlook 2016Final venture outlook 2016
Final venture outlook 2016Mark Suster
 
There is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront VenturesThere is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront VenturesMark Suster
 
The Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital IndustryThe Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital IndustryMark Suster
 
Why It's Morning in Venture Capital
Why It's Morning in Venture CapitalWhy It's Morning in Venture Capital
Why It's Morning in Venture CapitalMark Suster
 

Mehr von Mark Suster (20)

Funding in the time of Corona Virus
Funding in the time of Corona VirusFunding in the time of Corona Virus
Funding in the time of Corona Virus
 
Seed stage 2019 final
Seed stage 2019   finalSeed stage 2019   final
Seed stage 2019 final
 
Is vc still a thing final
Is vc still a thing   finalIs vc still a thing   final
Is vc still a thing final
 
Staff at vc firms
Staff at vc firmsStaff at vc firms
Staff at vc firms
 
ICO 2.0 Summit - Keynote Presetnation
ICO 2.0 Summit - Keynote PresetnationICO 2.0 Summit - Keynote Presetnation
ICO 2.0 Summit - Keynote Presetnation
 
Upfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC SurveyUpfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC Survey
 
Upfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deckUpfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deck
 
Fundstrat Bitcoin & Blockchain presentation for Upfront Summit
Fundstrat Bitcoin & Blockchain presentation for Upfront SummitFundstrat Bitcoin & Blockchain presentation for Upfront Summit
Fundstrat Bitcoin & Blockchain presentation for Upfront Summit
 
Upfront Ventures VC Survey 2017
Upfront Ventures VC Survey 2017Upfront Ventures VC Survey 2017
Upfront Ventures VC Survey 2017
 
Upfront LP Survey of the Venture Capital & Startup Industry
Upfront LP Survey of the Venture Capital & Startup IndustryUpfront LP Survey of the Venture Capital & Startup Industry
Upfront LP Survey of the Venture Capital & Startup Industry
 
Upfront State of the VC & Tech Industry 2017
Upfront State of the VC & Tech Industry 2017Upfront State of the VC & Tech Industry 2017
Upfront State of the VC & Tech Industry 2017
 
Final LA tech and venture landscape
Final LA tech and venture landscapeFinal LA tech and venture landscape
Final LA tech and venture landscape
 
Final san diego venture group keynote 2016
Final san diego venture group keynote   2016Final san diego venture group keynote   2016
Final san diego venture group keynote 2016
 
Final upfront lp survey data 2016
Final upfront lp survey data 2016Final upfront lp survey data 2016
Final upfront lp survey data 2016
 
VC survey data 2016
VC survey data 2016VC survey data 2016
VC survey data 2016
 
Upfront vc analysis 2016
Upfront vc analysis 2016Upfront vc analysis 2016
Upfront vc analysis 2016
 
Final venture outlook 2016
Final venture outlook 2016Final venture outlook 2016
Final venture outlook 2016
 
There is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront VenturesThere is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront Ventures
 
The Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital IndustryThe Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital Industry
 
Why It's Morning in Venture Capital
Why It's Morning in Venture CapitalWhy It's Morning in Venture Capital
Why It's Morning in Venture Capital
 

Último

2024.03.12 Cost drivers of cultivated meat production.pdf
2024.03.12 Cost drivers of cultivated meat production.pdf2024.03.12 Cost drivers of cultivated meat production.pdf
2024.03.12 Cost drivers of cultivated meat production.pdfThe Good Food Institute
 
From the origin to the future of Open Source model and business
From the origin to the future of  Open Source model and businessFrom the origin to the future of  Open Source model and business
From the origin to the future of Open Source model and businessFrancesco Corti
 
Explore the UiPath Community and ways you can benefit on your journey to auto...
Explore the UiPath Community and ways you can benefit on your journey to auto...Explore the UiPath Community and ways you can benefit on your journey to auto...
Explore the UiPath Community and ways you can benefit on your journey to auto...DianaGray10
 
Key Trends Shaping the Future of Infrastructure.pdf
Key Trends Shaping the Future of Infrastructure.pdfKey Trends Shaping the Future of Infrastructure.pdf
Key Trends Shaping the Future of Infrastructure.pdfCheryl Hung
 
Oracle Database 23c Security New Features.pptx
Oracle Database 23c Security New Features.pptxOracle Database 23c Security New Features.pptx
Oracle Database 23c Security New Features.pptxSatishbabu Gunukula
 
IT Service Management (ITSM) Best Practices for Advanced Computing
IT Service Management (ITSM) Best Practices for Advanced ComputingIT Service Management (ITSM) Best Practices for Advanced Computing
IT Service Management (ITSM) Best Practices for Advanced ComputingMAGNIntelligence
 
SIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENT
SIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENTSIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENT
SIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENTxtailishbaloch
 
UiPath Studio Web workshop series - Day 2
UiPath Studio Web workshop series - Day 2UiPath Studio Web workshop series - Day 2
UiPath Studio Web workshop series - Day 2DianaGray10
 
GraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptx
GraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptxGraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptx
GraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptxNeo4j
 
Webinar: The Art of Prioritizing Your Product Roadmap by AWS Sr PM - Tech
Webinar: The Art of Prioritizing Your Product Roadmap by AWS Sr PM - TechWebinar: The Art of Prioritizing Your Product Roadmap by AWS Sr PM - Tech
Webinar: The Art of Prioritizing Your Product Roadmap by AWS Sr PM - TechProduct School
 
CyberSecurity - Computers In Libraries 2024
CyberSecurity - Computers In Libraries 2024CyberSecurity - Computers In Libraries 2024
CyberSecurity - Computers In Libraries 2024Brian Pichman
 
.NET 8 ChatBot with Azure OpenAI Services.pptx
.NET 8 ChatBot with Azure OpenAI Services.pptx.NET 8 ChatBot with Azure OpenAI Services.pptx
.NET 8 ChatBot with Azure OpenAI Services.pptxHansamali Gamage
 
20140402 - Smart house demo kit
20140402 - Smart house demo kit20140402 - Smart house demo kit
20140402 - Smart house demo kitJamie (Taka) Wang
 
Flow Control | Block Size | ST Min | First Frame
Flow Control | Block Size | ST Min | First FrameFlow Control | Block Size | ST Min | First Frame
Flow Control | Block Size | ST Min | First FrameKapil Thakar
 
How to release an Open Source Dataweave Library
How to release an Open Source Dataweave LibraryHow to release an Open Source Dataweave Library
How to release an Open Source Dataweave Libraryshyamraj55
 
Stobox 4: Revolutionizing Investment in Real-World Assets Through Tokenization
Stobox 4: Revolutionizing Investment in Real-World Assets Through TokenizationStobox 4: Revolutionizing Investment in Real-World Assets Through Tokenization
Stobox 4: Revolutionizing Investment in Real-World Assets Through TokenizationStobox
 
TrustArc Webinar - How to Live in a Post Third-Party Cookie World
TrustArc Webinar - How to Live in a Post Third-Party Cookie WorldTrustArc Webinar - How to Live in a Post Third-Party Cookie World
TrustArc Webinar - How to Live in a Post Third-Party Cookie WorldTrustArc
 
Graphene Quantum Dots-Based Composites for Biomedical Applications
Graphene Quantum Dots-Based Composites for  Biomedical ApplicationsGraphene Quantum Dots-Based Composites for  Biomedical Applications
Graphene Quantum Dots-Based Composites for Biomedical Applicationsnooralam814309
 
The Importance of Indoor Air Quality (English)
The Importance of Indoor Air Quality (English)The Importance of Indoor Air Quality (English)
The Importance of Indoor Air Quality (English)IES VE
 
Trailblazer Community - Flows Workshop (Session 2)
Trailblazer Community - Flows Workshop (Session 2)Trailblazer Community - Flows Workshop (Session 2)
Trailblazer Community - Flows Workshop (Session 2)Muhammad Tiham Siddiqui
 

Último (20)

2024.03.12 Cost drivers of cultivated meat production.pdf
2024.03.12 Cost drivers of cultivated meat production.pdf2024.03.12 Cost drivers of cultivated meat production.pdf
2024.03.12 Cost drivers of cultivated meat production.pdf
 
From the origin to the future of Open Source model and business
From the origin to the future of  Open Source model and businessFrom the origin to the future of  Open Source model and business
From the origin to the future of Open Source model and business
 
Explore the UiPath Community and ways you can benefit on your journey to auto...
Explore the UiPath Community and ways you can benefit on your journey to auto...Explore the UiPath Community and ways you can benefit on your journey to auto...
Explore the UiPath Community and ways you can benefit on your journey to auto...
 
Key Trends Shaping the Future of Infrastructure.pdf
Key Trends Shaping the Future of Infrastructure.pdfKey Trends Shaping the Future of Infrastructure.pdf
Key Trends Shaping the Future of Infrastructure.pdf
 
Oracle Database 23c Security New Features.pptx
Oracle Database 23c Security New Features.pptxOracle Database 23c Security New Features.pptx
Oracle Database 23c Security New Features.pptx
 
IT Service Management (ITSM) Best Practices for Advanced Computing
IT Service Management (ITSM) Best Practices for Advanced ComputingIT Service Management (ITSM) Best Practices for Advanced Computing
IT Service Management (ITSM) Best Practices for Advanced Computing
 
SIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENT
SIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENTSIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENT
SIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENT
 
UiPath Studio Web workshop series - Day 2
UiPath Studio Web workshop series - Day 2UiPath Studio Web workshop series - Day 2
UiPath Studio Web workshop series - Day 2
 
GraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptx
GraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptxGraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptx
GraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptx
 
Webinar: The Art of Prioritizing Your Product Roadmap by AWS Sr PM - Tech
Webinar: The Art of Prioritizing Your Product Roadmap by AWS Sr PM - TechWebinar: The Art of Prioritizing Your Product Roadmap by AWS Sr PM - Tech
Webinar: The Art of Prioritizing Your Product Roadmap by AWS Sr PM - Tech
 
CyberSecurity - Computers In Libraries 2024
CyberSecurity - Computers In Libraries 2024CyberSecurity - Computers In Libraries 2024
CyberSecurity - Computers In Libraries 2024
 
.NET 8 ChatBot with Azure OpenAI Services.pptx
.NET 8 ChatBot with Azure OpenAI Services.pptx.NET 8 ChatBot with Azure OpenAI Services.pptx
.NET 8 ChatBot with Azure OpenAI Services.pptx
 
20140402 - Smart house demo kit
20140402 - Smart house demo kit20140402 - Smart house demo kit
20140402 - Smart house demo kit
 
Flow Control | Block Size | ST Min | First Frame
Flow Control | Block Size | ST Min | First FrameFlow Control | Block Size | ST Min | First Frame
Flow Control | Block Size | ST Min | First Frame
 
How to release an Open Source Dataweave Library
How to release an Open Source Dataweave LibraryHow to release an Open Source Dataweave Library
How to release an Open Source Dataweave Library
 
Stobox 4: Revolutionizing Investment in Real-World Assets Through Tokenization
Stobox 4: Revolutionizing Investment in Real-World Assets Through TokenizationStobox 4: Revolutionizing Investment in Real-World Assets Through Tokenization
Stobox 4: Revolutionizing Investment in Real-World Assets Through Tokenization
 
TrustArc Webinar - How to Live in a Post Third-Party Cookie World
TrustArc Webinar - How to Live in a Post Third-Party Cookie WorldTrustArc Webinar - How to Live in a Post Third-Party Cookie World
TrustArc Webinar - How to Live in a Post Third-Party Cookie World
 
Graphene Quantum Dots-Based Composites for Biomedical Applications
Graphene Quantum Dots-Based Composites for  Biomedical ApplicationsGraphene Quantum Dots-Based Composites for  Biomedical Applications
Graphene Quantum Dots-Based Composites for Biomedical Applications
 
The Importance of Indoor Air Quality (English)
The Importance of Indoor Air Quality (English)The Importance of Indoor Air Quality (English)
The Importance of Indoor Air Quality (English)
 
Trailblazer Community - Flows Workshop (Session 2)
Trailblazer Community - Flows Workshop (Session 2)Trailblazer Community - Flows Workshop (Session 2)
Trailblazer Community - Flows Workshop (Session 2)
 

Managing Your Startup Board

  • 1. !1 Mark Suster Managing Partner, Upfront Ventures Managing Your Startup Board
  • 2. Many entrepreneurs think about boards in the traditional sense as providing “oversight” to their activities. Shareholders Board Executives 2
  • 3. 3 And of course this is the legal & fiduciary role of a board Shareholders Board Executives }
  • 4. 4 But if you want to be truly effective as a founder you should think more about how YOU manage the BOARD. Board Executives Make your board an extended part of your executive team: super-connected, free interns.
  • 5. "I can always get money. Where else can I get very connected and powerful people to do work for me?” !5 - Founder
  • 6. Photo by Brittany Simuangco on Unsplash6 How boards initially see you - it’s a bit like new parents - it’s not adversarial at all • Unconditional love • A sense of responsibility • An important role in “oversight” • Define their own image by your success
  • 7. 7 As you grow what you think you should do & what the board thinks can diverge
  • 8. 8 Ultimately it’s up to you to take appropriate risks - but you must then manage the board
  • 9. The Continuous Board A different way to think about managing your board !9 Photo by Sasha • Stories on Unsplash
  • 10. Board meetings are how most founders think about board interactions but they're actually the least valuable part of your board relationship
  • 11. A great board is a highly-engaged group who knows your business intimately
  • 12. If you build trust they’re the only people you can share most sensitive decisions with
  • 13. Many founders treat boards as administration functions that solely receive quarterly updates. Let’s call this the “waterfall board.” Time Research Design Build Test Deploy Waterfall Software Development User Feedback Waterfall Board Q2 Q3 Q4 Q1 BOD Update BOD Update BOD Update BOD Update
  • 14. The “continuous board" approach involves more frequent interactions –  call / text / email at any time for quick input to iterate and course correct. Continuous involvement makes your board feel knowledgable & take ownership of decisions
  • 16. Each member of a high functioning board… - Knows each other personally. Has a working relationship where they can resolve differences of opinions
  • 17. - Truly understands the underlying businesses. Knows strategy, execution & financial metrics Each member of a high functioning board… - Knows each other personally. Has a working relationship where they can resolve differences of opinions
  • 18. - Finds this board assignment important relative to their other time commitments Each member of a high functioning board… - Knows each other personally. Has a working relationship where they can resolve differences of opinions - Truly understands the underlying businesses. Knows strategy, execution & financial metrics
  • 19. - Doesn’t have incentives that are misaligned with the company, its shareholders or other board members Each member of a high functioning board… - Knows each other personally. Has a working relationship where they can resolve differences of opinions - Truly understands the underlying businesses. Knows strategy, execution & financial metrics - Finds this board assignment important relative to their other time commitments
  • 20. - Knows it’s his or her fiduciary obligation to serve interests of the company first & foremost Each member of a high functioning board… - Knows each other personally. Has a working relationship where they can resolve differences of opinions - Truly understands the underlying businesses. Knows strategy, execution & financial metrics - Finds this board assignment important relative to their other time commitments - Doesn’t have incentives that are misaligned with the company, its shareholders or other board members
  • 21. Ultimately it’s in your interest to invest in creating these working relationships - not just with you but amongst non-exec board members.
  • 22. A board that knows and likes each other is more likely to resolve hard conflicts.
  • 23. • Schedule board meals / social time • Encourage non-exec board sessions • Help plan non-exec board calls Building relationships takes effort
  • 25. Source: Mark Suster, Both Sides of the Table Your board will increase over time and it’s highly likely you won’t retain a board majority (and that’s ok) Time Round Seed • 2 Founders • Maybe Seed Investor 3 Person D+ • 1-2 Founders • 3 VC Investors • 2 Independent • 1-2 Board Observers 7 Person B • 2 Founders • A + B Investor • 2 Independent or common 5 Person Founder Controlled Independent or Investor Controlled
  • 26. What makes a great Independent Board Director? A Good Mentor Industry Experience Local Has Skin in the Game Time to Commit Startup Experience An Honest BrokerThere in Good Times & Bad Diplomatic Source: Mark Suster, Both Sides of the Table
  • 28. Photo by Pineapple Supply Co. on Unsplash If you ask your board about your logo or brand colors, they will debate it for 30 minutes …if you do this, that’s on you
  • 29. Executive Management • Strategy, monthly budgets, hiring / firing, financial results • Sales, marketing, pricing, product, support, HR, finance It’s your job to “run the company” and not let your board micro-manage operations. It’s your job to keep board meetings “at board level.” Source: Mark Suster, Both Sides of the Table
  • 30. Executive Management Board of Directors • Strategy, monthly budgets, hiring / firing, financial results • Sales, marketing, pricing, product, support, HR, finance • Annual budget • Strategy & performance • Fund raising, M&A, audit, executive compensation • Exec team hiring / firing A board’s role is to provide oversight of the company on behalf of all shareholders. Source: Mark Suster, Both Sides of the Table
  • 31. Executive Management Board of Directors Investor Governance • Strategy, monthly budgets, hiring / firing, financial results • Sales, marketing, pricing, product, support, HR, finance • Annual budget • Strategy & performance • Fund raising, M&A, audit, executive compensation • Exec team hiring / firing • Fund raising, M&A, debt • Scope and structure of business Some key decisions also require approval from shareholder groups, beyond board approval. Source: Mark Suster, Both Sides of the Table
  • 32. PresentDebate In thinking about how to run any individual board meeting it’s important that you understand what you’re trying to achieve Of course each meeting can be a combination of both activities
  • 33. Inform Decide It’s equally important that you know your goal for the meeting. Are you seeking to make major decisions or to align board members? Not every board meeting requires a big decision to be made
  • 34. PresentDebate Inform Decide Filibuster A common mistake is to spend BOD meeting presenting more materials than a group can digest.
  • 35. A better use of time is to debate the most strategic topics being weighed by the exec team, tapping your directors’ collective wisdom. PresentDebate Inform Decide Advice
  • 36. PresentDebate Inform Decide There are times where exec teams require decisions and want board sign-off to underline a key move you plan to make. Approval
  • 37. • M&A • Capital Raise • Annual Budget • Hire / Fire Critical Executives There are times when you really need the board engaged in an existential question PresentDebate Inform Decide Huge, Strategic Decisions
  • 38. If you have four board meetings a year you can run different playbooks based on the board meeting Q2 Q3 Q4Q1 • Next Year’s Budget • Detailed meeting with heavy debate • Broader exec teams attend / present • Board lunch / dinner • Strategy session • Board only • Update session / deep dive on business • Broader exec teams attend / present Example
  • 39. Boards. At times your best cheerleaders, coaches, mentors and disappointed mom & dad.
  • 40. Remember that board members have personal identity tied up in your successes & setbacks. They aren’t rooting for failure.
  • 41. Photo by Brittany Simuangco on Unsplash41 But even your biggest champions have oversight responsibilities to encourage what they ultimately believe is right, which isn’t always what you want to do.
  • 42. If you proactively communicate with and manage your board you’re much more likely to stay in sync.
  • 43. !43 Mark Suster Managing Partner, Upfront Ventures Managing Your Startup Board Thank You