Why Founders Should Join Another Company's Board

This article explores the benefits of founders joining the board of another company, as advocated by Brad Feld. It challenges the conventional belief that founders should solely focus on their own startup for success.

• Joining an outside board provides founders with a unique vantage point to observe and learn from other companies' growth journeys.
• It expands their network, connecting them with a wider range of individuals within the startup ecosystem.

The Benefits of Joining a Company Board

The article emphasizes the various benefits of joining a company board, including:

• Extending your network and building relationships with other venture capital and startup professionals.
• Gaining a new perspective on a company from a different vantage point, beyond the typical CEO role.
• Understanding the intricacies of financing discussions from a board member's perspective.
• Deepening your understanding of "fiduciary responsibility" and its implications in decision-making.
• Developing a peer relationship with another CEO through the shared experience of being both a board member and CEO.
• Exposure to different management styles and conflicts, offering valuable lessons for leading your own company.

A Real-World Example: Awe.sm and Ian Rogers

The author highlights a specific example of Awe.sm, a company where the founder, Jonathan Strauss, has benefited immensely from having Ian Rogers, CEO of Topspin Media, on the board. This experience provides a real-world example of how a founder can gain valuable insights and guidance from an outside director.

• Ian Rogers acts as a mentor to Jonathan Strauss, sharing knowledge and guidance based on his own experience in building a successful company.
• The author draws a parallel to siblings, where younger siblings learn from their older siblings, suggesting that a company board member can offer similar guidance and support to the founders.
• An outside director brings an independent perspective that complements the investor-driven viewpoints on the board.

The Importance of Investor Empathy

The article emphasizes the value of an outside board member investing in the company, even if it's a nominal amount. This ensures that the board member has a personal stake in the company's success and understands the founder's perspective as a shareholder.

• It fosters empathy and aligns the interests of the board member with the founder's vision for the company.
• This encourages a collaborative approach where the board member actively participates in the company's growth and contributes to its success.

The Benefits for the Outside Director

The author acknowledges that joining a company board is mutually beneficial, suggesting that the outside director also gains valuable experience. It allows them to see the dynamics of board meetings from a different perspective, fostering greater understanding and empathy.

• The experience provides insights into the challenges and complexities of running a startup company from a more distant vantage point.
• It allows the outside director to learn from the founders' experiences and contribute their expertise to the company's growth.

The Author's Recommendation: Joining One Board is Enough

While recommending that founders join a company board, the author emphasizes that it's crucial to focus on just one outside board. This avoids spreading oneself thin and ensures sufficient focus on your own startup.

• Joining multiple boards can overwhelm founders and hinder their ability to effectively contribute to both companies.
• It's crucial to prioritize and dedicate the necessary time and attention to ensure the success of both your own company and the outside company board.