Tech

VCs and CEOs have to do their job when it comes to joining the Startup Board


was someone else As appalled as I am by the content of Connie Loizos’ recent article, Coming out of COVID, investors lose board preference? Article stories and quotes about investors reducing interest and participation in board meetings, not attending, sending junior associates to the cover, etc.? There is something to behold.

The reasons given are logical, including over-investors, Zoom fatigue, and novice directors. Connie’s memo, “Personally, VCs don’t add much value to boards,” notes many investors talking about how much value they add to boards. It’s pretty interesting to read as a CEO I’ve heard of (although the good ones are conduct Adds a lot of value!).

For the most part, everything about the content of this article pissed me off.

An uninvolved or dysfunctional board is not only bad for CEOs and MPs. they are bad for everyone. If the board has become a mere distraction for the CEO and investors who see it as a tax that doesn’t burden them, it’s time to push the board or reset his button. I was.

This reset should do four things:

Investors need to do their job better or quit

An uninvolved or dysfunctional board is not only bad for CEOs and MPs. they are bad for everyone.

The argument that investors don’t have time now because they traded too much in the pandemic is especially ludicrous. The pandemic has also reduced the amount of time VCs need to spend on individual board meetings. We used to have four in-person board meetings each year with directors who traveled for meetings, had dinner, spent time with the team, and attended committee meetings.

Today, the Board is fortunate enough to hold a face-to-face meeting once a year (more on that below). And when everything else is cut short and there is little travel, a certain VC needs to double the amount of time he spends on board meetings.

Serving as a director after an investment is central to the investor’s role. Since their primary function is to “find deals, execute deals, and manage portfolios,” they have obligations to the founders they support and the MPs they represent.

If you don’t have time to do a third job, you should let both the founder and the MP know before you step down. If VCs can’t focus on investing and adding value, they need to work with companies to find alternatives.

CEOs need to take their job as board leaders seriously



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