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Akash Bagrecha

Co-Founder at Jorden...ย โ€ขย 7m

How much board seat right should you give to an investor in exchange for funding? Yesterday, met an founder who is running a biz with โ‚น10 Cr rev During our discussion, the founder mentioned an investor who was interested but only on the condition of board seat. The founderโ€™s question to me was simple yet critical: โ€œHow do I know if a VC is asking for too much control in a financing round?โ€ Hereโ€™s how I see it. Deciding on giving a board seat starts with : Understanding the value addition the investor brings beyond the funds Next, itโ€™s essential to assess their stake post-funding The final key factor is alignmentโ€”do the investorโ€™s goals and approach match the founderโ€™s vision seed investor with a double-digit stake may earn a board seat, but they shouldnโ€™t dictate terms. Similarly, lead investors in Series A/B rounds might request certain veto rights, which can be reasonable, but non-lead investors usually donโ€™t need.

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