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Types of Boards of Directors

 

"Is the approach and relationship different towards boards primarily consisting of investors such as venture-backed companies?"

This question was asked at a recent webinar, now available on-demand:

"The Role Finance Plays in the Boardroom"

Please add your thoughts about it below. Thanks!

Answers

Topic Expert
Blair Cook
Title: Partner
Company: Executive Finance
LinkedIn Profile
(Partner, Executive Finance) |

Every board I've been involved with has had a slightly different culture to it. Some of the turnaround companies I've been involved with, the Board is very active, sometimes stepping in assuming management responsibilities on a transitional basis. As management matures and regains credibility, the board can and should fall back into an oversight role.

Venture capital boards tend to be highly engaged. Given the start up nature of the business, the management team lacks maturity and part of the value add of venture capital is supplementing the expertise voids of the start-up. It also helps that the venture capitalist is usually a significant shareholder. The bigger the financial stake in the company, the more engaged the director tends to be. So you will tend to find directors in these types of companies much more engaged and playing an active role in the company's development.

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