Board of Directors
The group of people with formal authority to make major decisions for the company — approving fundraises, executive hires, and other significant actions.
Quick Answer
Who typically sits on a startup's board of directors?
Early on, usually just the founders; as priced rounds close, investors typically negotiate board seats as part of the deal, resulting in a board that includes founders, investor representatives, and sometimes independent members.
- Board composition is negotiated deal by deal, not fixed
- Investor board seats are common in priced financing rounds
- Board approval is typically required for major equity actions
The Lovie Advantage
Lovie tracks board composition alongside cap table changes, since so many equity actions require board approval to execute.
See how this connects to Authorized Shares. For the formal definition, see the IRS's overview of forming a corporation.
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