Startup Funding Espresso -- What Is a Board Observer?
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. So, what is a board observer? In general, the board observer is just that, an observer. Someone who listens to the discussion but doesn\u2019t actively participate unless called on to join in. Some investors negotiate a \u2018board observer\u2019 position as part of their investment so they can monitor the progress of the company. Most board decisions are perfunctory, such as signing off on the 409A valuation, stock options plans, etc. The board observer attends your board meetings but does not have voting rights. They gain access to the board documents but don\u2019t have a legal say in any of the decisions. They may be asked to leave during discussions of a sensitive nature. Angel investors, corporate VCs, and others will use this as a means of staying connected. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group