5 reasons to build a board now

September 21, 2016

Idea to IPO: Five Reasons to Build a Board NowSpeaker Panel:

Brian Sapp of Hercules Technology Growth CapitalRob Purcell of Nimble Holdings, LLCChristopher Forrester of Shearman & Sterling LLP

Moderator: Carol Sands of The Angels’ Forum

The BasicsWhat is a board of directors?

What is the difference between an advisory board and board of directors?

What do advisory board members do?

What do directors do?

Idea to IPO: Five Reasons to Build a Board Now | September 21, 2016PLDOCS01-#82038

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Nuts and Bolts of a Board of Directors

How many directors is the right number?

What are good term limits for board directors?

What is a staggered board? Should I have a staggered board?

What legal standards are applicable to board directors?


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Nuts and Bolts of a Board of Directors (cont.) Should I compensate my board?

Should I pay in stock or cash? How much?

How many board meetings should we have each year?

Do I need to separate committees?


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Why should my start-up company have a board?


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1. Experience Counts Business is complicated and the world is unpredictable. Having a

team of battle-tested, trusted advisors to help navigate the commercial, legal and financial markets increases your chances of avoiding significant mistakes, and working through mistakes that you may make.

Sophisticated board directors can help you navigate selection of outside service providers, such as accountants, lawyers, etc.


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2. Drive Sales and Open Doors Board directors with financial, legal and accounting experience can

help a company design an advantageous revenue model early in its life.

Experienced and well-connected board directors can facilitate connections that may improve sales and supply arrangements.

Board directors can open doors that may lead to new or enhanced opportunities.


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3. Fundraise and Grow Experienced board directors can help you plan your expected fund

raising activities and navigate the complexities of corporate finance transactions.

Connected board directors can open doors to funding sources that you may not otherwise see.

Respected board directors improve valuation.


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4. Enhance Shareholder Trust Seasoned industry professionals provide a level of credibility that will

enhance your shareholder relations.

A well-functioning board serves to protect the officers from claims by shareholders that their investment has been mismanaged.


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5. We All Need a Mentor

Having a group of trusted business advisors can be invaluable to CEOs.

Board directors also can be leveraged to manage specific projects for the company from time to time.


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