Building a Board of Advisors

Slideshow Transcript

1. Slide 1: Building a Board of Advisors Andy Forbes
2. Slide 2: What is a BOA? • An advisory board is designed to provide independent advice and counsel to the owner / CEO / management team, independent of the fiduciary responsibilities and D&O costs associated with a board of directors
3. Slide 3: Why a BOA? • Augments in-house experience and expertise • Enhanced corporate self-discipline and accountability • Objective opinions • Strategic planning and counsel • Honesty
4. Slide 4: What does a BOA do? • Make key introductions • Help establish corporate objectives and policies • Enhance CEO and senior management effectiveness • Act as arbitrator • Act during a crisis • Lend credibility • Plan strategy development
5. Slide 5: Care and feeding of a BOA • Keep the board informed • Give the board time to prepare • Sharing significant information builds trust • Set the long-range agenda • Motivate members • Listen, don’t argue
6. Slide 6: Advisor types • Wow! S/he is on your BOA? • Friend / business acquaintance • Free doughnuts
7. Slide 7: Timing of a BOA • Pre Series A only if it helps your fund raising • Series A / B keep it four to seven people • Mezzanine go for it!
8. Slide 8: BOA Compensation • Pre Series A / B – Nothing – Expenses – Options • Post Series A / B – Per meeting fee – Retainer – Options
9. Slide 9: BOA failures • Incompatible or disruptive personalities • Too many cooks • Insufficient compensation • CEO
10. Slide 10: Recap • Stay informal for as long as possible • If you do it, do it right • You get what you pay for • Avoid “Free Doughnut Man” Andrew Forbes a.forbes@earlystage.com