startups – Aneesh Varma

On the topic of communication.

Words are imperfect containers of meaning.

But it’s the best things we have to communicate.
(So use them with care)

Something I wrote down, derived from a conversation I recently had.

In our daily office communication, words are all we really get to use — either written on Slack or emails or perhaps in spoken form.

Worth thinking about whether everyone will interpret specific words the same way as you intended. Think through that. 🤔 Is there a different word that would carry a certain idea better? Alternate ones? Easier ones?

As Founders, communication is one of the most important roles we have (our team, our customers, investors, media, regulators, naysayers… et al).

And yet, words are all we get to use.

Think carefully.

Originally written: November 2018, updates in 2021, 2023, 2024

(This is the first of a three-part writeup about Board governance, this one focusses on the initial setup and core fundamentals).

You launched a startup, raised a bit of Seed capital, and now it’s starting to get to that that 0-to-1 milestone. The 1 is approaching, and maybe you have been told that you need to step up your board governance before the larger institutional round (“SeriesA”)

Or maybe, all of a sudden you are getting these term sheets with words like Board Seats and Board Observers all over them. What do you do?

As a Founder-CEO, the Board is going to be something you need to become really good at.

This is something you cant just coast by. In a way, it’s your job review.

And if done well, this Board changes from being a 3-4 hour burden on your calendar every few months, to something that is another team that is working to help you towards your goals. Imagine that.. another (powerful) free resource working for you!

Let’s start with the basics:

Corporate Governance:

Why is this group of people needed?

What’s the purpose?

Rule number 1: The Board meeting isn’t a Sales meeting.

Not a time for you to have to defend the VC investors decision to back you. They shouldn’t be there to re-underwrite their investment decisions.

Change the tone.

Alignment of cause.

Your Board and making it useful. Picking your Chairperson and other Board Members

Independent members

Trial period

Can you be naked in front of your chair (CEO Test)

Sector knowledge

Coach or mentor?

Balance on the board — Stick to odd numbers and never more than 9

Do a deep dive topic at every board session

Peacetime & Wartime

1-1s prior to the actual board

Bad news shouldn’t be arriving when they first open the Board pack.

Pre-reading

– I prefer to send written notes (prose) with a few graphs thrown in. Effectively a PDF of a

Notion page as pre-reading.

Expect everyone to have read it before the meeting. Yes. Pre-reading.

Have a chat with someone if they aren’t doing this (or use your Chairperson, to crack that whip).

Bad questions. Manage the time

3 hours for a cause. Not just to show up

Size of the Board.

It’s not a party. Small effective teams.

Remember startups rarely vote at the Board.

Voice matters.

So a Board observer can be very impactful as they don’t need to vote but can still be “loud”

Suggest the idea of Closed-session and Open-session

(Corporate VC investor creating competitive tension)

Role of independents on the Board

Aneesh Varma — Founder Craft

Tag: startups

Words are imperfect containers of meaning

Notes to Founders & CEOs – Your Board session isn’t a sales meeting