"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!
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
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.
