How ironic…I did a post yesterday about how disfunctional venture backed boards can get and behold, a new white paper "The Basic Responsibilities of VC-Backed Company Directors" from a consortium of venture groups comes out on best practices regarding boards.
"The paper’s basic premise is that VC-backed boards are particularly prone to
dysfunction, due to: (1) Conflicting interests; (2) The regular addition of
new board members following financing rounds; and (3) The likely presence of
inexperienced members like first-time entrepreneurs, junior VCs or
independent directors with strong domain knowledge but no background on
VC-backed boards. Moreover, what happens if one high-profile VC is on a
board with a bunch of lower-profile VCs. Does the high-profile guy always
get his way, because the others don’t want to lose out on the opportunity to
continue co-investing?" (PE Hub)
Interesting read. We will see what uptake occurs on the board assessment tools.