The Real Real Reason I Prefer To Sit on Company Boards

It is because I don't want to get fu@#cked.

I recently wrote an article about the "Real Reason I like to Sit on Companies Boards." In the article, I spoke about how the knowledge of the company at the board level gives me insights on how to add value to the company through introductions, partnerships, etc. But, unfortunately, I feel it isn't ringing true after sitting with this notion for quite a while.

I was sitting with a very accomplished founder/CEO who recently started his SaaS investing family office here in Phoenix. He was referring to his involvement on the board level and speaking about other lead investors that shouldn't sit on boards because they aren't operators and couldn't add as much value.

This statement also made me reflect on my propensity to require board presence in the companies I invest in. Do I need to feel like I add value? Is this an ego thing with me? All of these questions made me think long and hard. After thoroughly reflecting, I found out the REAL reason I want to sit on company boards.

It is because I don't want to get fu@#cked. Having a board seat allows me to have a voice to protect my shareholders and me after financing has occurred. It gives me a poker chip to leverage in a case where I don't have much control as a minority shareholder. It allows me to approve budgets, option grants, compensations plans etc.

The notion of value add is nice when presenting your firm as a founder or yourself as a board member. It is great to have a successful SaaS operator/founder on your board, but that isn't me. Nor will I try to compare myself to one. The board seat is selfish for me to protect my investment. I've got enough founders who say nice things about me to win deals, so that is for working now.