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Home/Startup Roles/Board Member
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Governance·Board Member

Board Member

A director elected to oversee the company on behalf of shareholders, with legal duties to the company itself.

What The Role Does

A board member sits on the board of directors, the body that governs the company on behalf of its shareholders. Directors carry legal duties — principally care and loyalty — owed to the company rather than to whoever appointed them.

In venture-backed companies, board seats are typically held by founders, investor representatives, and independent directors, with composition negotiated at each financing.

Typical Responsibilities

  • Hiring, evaluating, and if necessary replacing the CEO
  • Approving budgets, financings, and major transactions
  • Overseeing risk, compliance, and executive compensation
  • Providing counsel without stepping into management
  • Representing shareholder interests in major decisions

What Investors Look For

  • A board sized and composed for the company's stage
  • Directors who challenge management constructively
  • Clear separation between governance and day-to-day management
  • Relevant operating or sector experience
  • Attendance, preparation, and genuine engagement
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