Will the VC take over the Board?
Venture capitalists will want to protect their investment, especially at the high risk, early stage of the company, but even so, majority board control will be rare.
A good VC will want to protect his company, and will need the ability to make things happen. However, every VC knows that it's the entrepreneurs who run the company, not the investors.
Board size should be small -- the last thing you want is too many people interfering with the company. Ideally, a 5-member board is enough for a small company. Look for a 2-2-1 breakdown. Two people from the company, 2 VC investors and 1 3rd party who is chosen by both sides. Ideally, the 3rd party should have industry knowledge, and be the person to break the ties in the best interests of the company -- not the investors, and not the employees.
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