Lead investors ask for board seats; qualify them first.
Boards play a crucial role in a startup’s success or failure, and with a few precious seats to give out, you want to assure yourself that you’re not just getting a good investor but also a good and productive board member.
Just because someone invests does not mean that:
(a) they know how to be a good director, and
(b) they can help add value to improve the probability of a startup’s success.
Just like investors owe it to themselves to do due diligence on the company they’re about to invest in, founders should also do due diligence on the investor by talking to companies where they serve or have served in the past.
You want both the best investors and the best directors.
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