Board of Directors

Board of Directors

The governing body that oversees the CEO and approves major corporate actions.

What Board of Directors means

Early boards are typically 3 seats: two founders and one investor. Series A boards are often 5 seats: two founders, two investors, one independent. Board composition shifts control at every round.

Board seats aren't the same as observer seats. Observers attend meetings without voting rights — a common way to give a fund visibility without giving up control.

Related fundraising guides (40)

• Board of Directors
• Board vs Advisors
• Burn Rate
• CAC (Customer Acquisition Cost)
• Cap Table
• Convertible Note
• Dilution
• Discount (SAFE / Note)
• Due Diligence
• Friends and Family Round
• Gross Margin
• KPI (Key Performance Indicator)
• Liquidation Preference
• LTV (Customer Lifetime Value)
• MFN Clause (Most-Favored Nation)
• MRR (Monthly Recurring Revenue)
• Option Pool
• Oversubscribed Round
• Post-Money Valuation
• Pre-Money Valuation
• Pre-Seed Round
• Pro-Rata Rights
• Revenue Multiple
• Roll-Up Vehicle (RUV / SPV)
• Runway
• SAFE (Simple Agreement for Future Equity)
• Seed Round
• Series A
• Series B
• Term Sheet
• Valuation Cap
• Vesting
• Go-to-Market
• Grant Funding
• Grants vs Equity
• Grants vs VC
• GraphQL vs REST
• Gross Margin
• Growth Loops
• GTM Motion

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