Board of Directors
Also called Board
The group that governs the company and holds the company's biggest decisions: hiring or firing the CEO, approving budgets and fundraises, and signing off on a sale. Made up of founders, investor directors, and independents.
Why it matters
Founders can own a majority and still lose control through board composition. Designing the board thoughtfully, round by round, is one of the most underrated parts of staying in control of your company.
For example
A three-person board, two founders and one investor, votes to approve the annual budget and the terms of the next fundraise.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Raising your first round, part of the Starting Up hub.
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