Balance expertise crucial in forming a board of directors
How do you form a balanced board of directors for your new healthcare business?
Firas Raouf, a venture partner at Open View Ventures, recommends that early-stage companies start with five-person boards. Having an odd number of members is important for voting purposes, so if you want to add more members in the future, consider adding them two at a time.
Two of those seats should be designated for company management, including the CEO and a co-founder or senior manager. Two more should be for investors, especially if the company is venture-backed. An independent board member with expertise in the market or industry should occupy the fifth seat, to provide neutral knowledge and insight.
Having an additional independent board member in place of an investor or company manager can make the board even more colorful, Raouf says in this video from Open View Ventures.