If you are incorporated as a C-corp, you are legally mandated to have a Board of Directors right away. However, this can consist of just one person if desired (e.g., CEO) to fulfill the requirement. Establishing a board earlier than funding rounds can provide helpful oversight, access to networks and expertise, and strengthen your relationships with advisors or early investors. However, waiting until necessary (e.g., when VC investors insist) avoids unnecessary complexity in the early, resource-constrained days. Common stages of Boards are listed below:
- At Incorporation (Pre-Seed or Bootstrap Phase): Minimal boards, often just the founder(s), to meet legal obligations. Avoid adding external members unless they bring significant expertise, as this keeps decision-making simple and founder-controlled.
- Seed Stage: This is a good time to establish a more structured board, depending on the nature of your investors. A typical setup might include 3 members: 2 founders and 1 investor representative. Doing so early forces periodic business reviews, encourages strategic planning, and provides valuable input from vested parties without ceding too much control.
- Series A and Beyond: Boards expand at this stage, and VCs will usually demand a seat. A Series A board might grow to 4-5 members (e.g., 2 founders, 1 seed investor, 1 Series A VC, and possibly 1 independent director). Subsequent rounds (Series B, C, etc.) might add more seats for new investors, shifting toward balanced or investor-influenced compositions, with independents added for objectivity.
One of the biggest factors that will define your long-term relationships with your investors is trust. And trust isn’t built in a single meeting or interaction, but is earned over time, especially when you navigate difficult moments together.
So how do you build trust from day one? Transparency. Share what’s happening inside of the company often, early and truthfully, both the wins and the challenges. When your investors, advisors and mentors are in the loop, they can help you solve problems and support you through difficult situations. The worst way to navigate board relationships is by hiding unpleasant news, or negatively surprising Directors at board meetings.