Should You Give an Investor a Board Seat? Read This First.

R Philip • March 12, 2025

Board seat dilemmas

A pre-seed founder asked:

“An investor wants a board seat along with their check. Feels early. Thoughts?”

Here’s the breakdown:

✅ The Upside of a Experienced Board
• Strategic guidance from experienced investors.
• Potential intros, resources, and extra support.
• Can boost credibility, attracting more investors and partners.

Sounds great, right? Well…

❌ The Downside
• You could lose control of decisions, if the board votes against you.
• Boards can fire founders. Yes, really.
• Investors prioritize exits, not always your vision.
• Founders may sugarcoat bad news to avoid trouble.

🤔 My Advice?
• Think before you offer a board seat.
• Don’t trade it for a bigger check.
• Choose carefully—it’s hard to undo.

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Family Offices are private wealth management advisory firms.