Why Your Board Seat Math Can Turn Against You

They haven't documented their decisions, and this creates a dangerous situation because that investor could have outsized influence, especially if there's only one founder director. Now there's one investor director, 50/50, and not necessarily is that investor going to vote the way the founder wants. This is why there is this third category of director called independent director, and what that means is that director doesn't have a conflict of interest like the investor director does, because they're going to really care about their LPs and their fund. And the founder director does because they're the founder. And if as a founder, you do nothing until you start raising your Series A and beyond, it's very difficult to have control of who ends up in that independent seat and making sure that the numbers, the votes around the table aren't quickly out of your favor as the founder.