Login

Feed Post

Akash Bagrecha

Stealth • 6h

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 ₹10 Cr rev During our discussion, the founder mentioned an investor who was interested but only on the condition of board seat. The founder’s question to me was simple yet critical: “How do I know if a VC is asking for too much control in a financing round?” Here’s how I see it. Deciding on giving a board seat starts with : Understanding the value addition the investor brings beyond the funds Next, it’s essential to assess their stake post-funding The final key factor is alignment—do the investor’s goals and approach match the founder’s vision seed investor with a double-digit stake may earn a board seat, but they shouldn’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 don’t need.

6 replies5 likes
2
Replies (6)

More like this

Recommendations from Medial

Image Description
Image Description

Havish Gupta

Stealth • 2m

What I have observed is that by paying attention to small details in any news, we can often predict the next big news. Let me explain with an example. Elon Musk was offered a seat on Twitter's board of directors after becoming the company's largest

See More
14 replies9 likes
3

Mahendra Lochhab

Stealth • 5m

Hero MotoCorp Acquires 2.2% Stake in Ather Energy. Hero MotoCorp will purchase the additional shareholding from an undisclosed existing investor.

0 replies2 likes
Anonymous
Image Description

Anonymous

Stealth • 29d

I was actually wondering if investment from any investor also means he get gets a share from the profit of the company, Say, if an investor buys 20% stake of a company, does it mean he also will get 20% of the profits earned by the company?

1 replies2 likes
Anonymous
Image Description
Image Description

Anonymous

Stealth • 8m

What happens when a company fails to generate revenue after raising funds from a VC. Are the company owners obliged to any amount in return for investors And how will investor get an exit if the company is a loss making company

10 replies13 likes
1
Image Description
Image Description

Chamarti Sreekar

Stealth • 3d

Why Raising Startup Funding Takes 6–8 Months Raising startup funding is often a lengthy process, typically taking 6 to 8 months instead of just weeks. This timeline can be broken down into three essential phases. 1. Finding a Lead Investor (Approx.

See More
12 replies10 likes
5

financialnews

Stealth • 20d

Tata Power acquires 40% stake in Khorlochhu Hydro Power for Rs 830 cr . . . On August 6, the Board of Directors of The Tata Power Company Limited approved a proposal for the acquisition of a 40 per cent equity stake in Khorlochhu Hydro Power Limited

See More
0 replies4 likes

arun kumar

Stealth • 6m

How to find a investor?

0 replies1 like
Image Description

Yash Barnwal

Stealth • 25d

The biggest players behind NVIDIA 🟢 are institutional investors like Vanguard, Blackrock, and FMR LLC, while CEO Jensen Huang holds a 3.55% stake.

2 replies13 likes
1
Anonymous
Image Description
Image Description

Anonymous

Stealth • 2m

Tell me how can I find angel investors for initial funding of my startup. I've built the product, now I need to scale it up. Any one has any better ways of finding an angel investor

4 replies9 likes
1
Image Description
Image Description

Harsh Dwivedi

 • 

Medial • 1m

Bangalore is the goat. auto driver’s seat had an office chair fixed for extra comfort

20 replies26 likes

Download the medial app to read full posts, comements and news.