CEO @ Pavilion | Co-Host of Topline Podcast | WSJ Best Selling Author of "Kind Folks Finish First"
The single dumbest reason NOT to take VC money is: “I don’t want to be accountable to a Board.” I’m sorry. You are human and you are fallible and you should be accountable like anyone should be. A Board, when well constructed, is a good thing. You WANT a Board. Boards can be useful. Boards can be helpful. Boards of 20 people after 17 funding rounds, 3 observers, and a bunch of people who can’t bother to read the slides before they show up, some of whom are angry they overpaid and being a pain in the tush every change they get? No, that sucks. I agree. But a small tight knit group of folks that are all pushing for your success and interested in serving the best needs of the business while giving you constructive feedback? That’s a good thing. Even if you don’t raise outside capital, you should seek it out.
I would argue that it's better to figure out how you can run this thing with as little cash as possible from outside places. It's possible to use bolt.new, build your founder brand on here and have a GTM Architect & Engineer who can help you get your first 30 customers WITHOUT outside capital. The trick is finding the right partner to help you with this. Don't give away equity for cash you don't need YET. Once you find PMF—rethink the gasoline to add to the fire but until you've found Content Market Fit on here + Product Market Fit with a validated ICP.... I would stay away from VC cash.
I think a better headline would be “ Picking who is on your Board is really really important “ No mattter how big our small , having the right board members who will help make the business stronger is the most important thing. Trust! Value Creation! Additive! Experienced! Those are attributes you need in a board. Many boards VC, PE and Public can have disadvantages if those attributes are not met.
Boards are your secret weapon: smart allies who challenge blind spots, accelerate growth, and transform good ideas into great strategies. Accountability isn't a cage—it's rocket fuel.
What I usually use boards for: → ironing my clothes → rolling Monopoly dice → cutting up vegetables What I often ask myself is: Am I accountable to the Board or is it accountable to me . . . #ThinkAboutIt #StaySmart
Being my own boss sucked. I needed someone with the vision to correct me, but I think when CEOs say they don't want to be accountable to a board, what they actually mean is "I'm afraid of choosing wrong people to be a part of my board" :) On a completely unrelated note - Sam Jacobs: loved your talk with at SaaS open with Nathan Latka, forwarded it to 15 people to watch! Great metrics.
It is also about leverage. What do they see and know that you don’t? Who do they have access to that you don’t? If you as a CEO/founder default to “I know best, always” you are probably not cut out for the role
What about the mismatched incentives of the people on the board? How can we make sure the founder is not the turkey who is fed to be slaughtered when it's time?
Agree with the importance of accountability. A well-structured board offers valuable insights. Ever considered the benefits of a mentor board?
Accountability can spark growth. A good board nudges you to think beyond your comfort zone, fostering innovation.
SaaS enthusiast
1dIf you establish good critiera for the purpose of having a board like skill gaps, etc, I’d agree. But to be honest, anything before 10 mil ARR is pointless. In the beginning you want to move fast and boards just slow you down. Which is why strategic advisors in the beginning is the best route with some advisory shares or fixed fees. And let’s be honest, if you can’t at least hit a revenue mark before you raise money, your DOOMED anyways in the long term no matter who’s on your board. Merry Christmas 🎁🎄