According to Caldbeck, he composed the letter after CircleUp had purchased out the financier’s company because he wanted to provide positive feedback, given that this individual’s “participation was exceptionally challenging for all of CircleUp and our board,” as he explained to this individual, whose identity was shielded.
The saga asked questions about what takes place behind the scenes at start-ups and about board structure specifically. Caldbeck’s situation may be more anomalous than not, suggest some veterans of the industry who have typical sense guidance around how to prevent bothersome board members and how to deal with them if they can’t be prevented.
And a lot of certainly, get to understand a potential board member as well as possible since who winds up as a director with your company can be a “life-changing decision” in both excellent and terrible ways, states Joel Peterson, a professor at Stanford’s company school, a former chairman of JetBlue Airways and the founding partner of Peterson Partners, a Salt Lake City-based firm that invests directly in start-ups and has stakes in lots of venture funds.
Peterson’s advice is to “speak with investors just as they’re interviewing you,” including not just to get a sense for whether somebody is knowledgable and shares your exact same values however also to get a sense for how much time they have for your company. In his view, investor are “often the worst board members while angel investors are frequently truly excellent due to the fact that they really care about the business owner and have a more hands-on connection with them while they’re developing business.”
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.