A balanced seed board
A 3-seat board: 2 founders, 1 lead investor. Founders keep decision control while giving the investor oversight.
- total_seats:
- 3
- founder_seats:
- 2
- investor_seats:
- 1
← Back to glossary
Governance★ Essential
Board of directors
The body that governs a company and takes the major strategic decisions.
Also known as : Board
Deep dive
The board of directors represents shareholders and oversees management: it validates budgets, approves fundraising and key hires, and can replace the CEO. After a round, investors usually take one or more board seats. Its composition (founders vs investors vs independents) decides who really controls key decisions - often more than the raw equity split.
Key formula
Helpful formula: define scope clearly and compare two scenarios before deciding.
Real-world examples
Pitfalls to avoid
- Giving away board control before the amount raised justifies it.
- Confusing equity majority with board majority - they can diverge.
Master your financial vocabulary
400+ terms decoded for ambitious founders. Quizzes, simulators, guided journeys, right inside the Timint app.
Discover TimintRelated terms
Governance
AML
AML is a finance acronym used when discussing decision-right allocation across founders, board, and investors.
Governance
Audit Committee
Audit Committee is a concept that clarifies decision-right allocation across founders, board, and investors.
Governance
Board Observer
Board Observer is a concept that clarifies decision-right allocation across founders, board, and investors.
Governance
Board Seat
Board Seat is a concept that clarifies decision-right allocation across founders, board, and investors.
Governance
Compliance
Compliance is a concept that clarifies decision-right allocation across founders, board, and investors.
Governance