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Akash Bagrecha
Co-Founder at Jorden... • 8m
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.
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