A client recently shared Gordon Daugherty’s article on Your First Board Meeting.
The gist is that when you first start your C Corporation with the intention of raising investment, the first board meetings are not really meetings at all. Just the co-founders signing some paperwork. But once investment is brought on, the lead investor is going to have a board seat and things become formal.
It is sound advice to keep in mind if you see yourself raising capital for your startup company.
Oh, and one more thing, if you have ever watched an episode of Shark Tank, you know that Investors Write Checks for Outcomes, Not Activities (another post by Gordon on his blog). Be sure to keep that in mind as an entrepreneur considering approaching outside investment.