Dear SaaStr: How do startups with 3+ founders often structure the Board of Directors to prepare for a Series A financing?
Most traditional VCs will prefer 2 “Common” seats after the Series A. That typically would be the Founder-CEO and one other founder. Three would be atypical.
Nothing is impossible and if having all 3 of you stay on the board is truly very important, you can stick to your guns there. At least for a while, until you raise a material amount of outside capital. But as a default, prepare to shrink it 2. It’s better for everyone in the end. The third can still attend all board meetings as an observer. And realistically, the third founder often doesn’t … really need to be on the board. Being an observer is plenty. Being included is enough.
Do you need to do this before your first VC round? Not really, as long as you’ve agreed which of you besides the founder CEO will stay on the board. That way when the Series A VCs ask about it, you’ve already got the answer.
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