A board of advisors is usually formed to help a company solve specific problems and can provide credibility for the company.

can be valuable of a board that has investor-appointed directors, but add one only when their presence is truly needed.

Forming a is like completing a jigsaw puzzle: a founder has to find the right people who fit with the company’s culture and can guide its management from a strategic perspective. 

You’ve just received your first venture capital . Congratulations—you’ve earned it. Now what does it all mean? “Pre-money valuation,” “ preference,” “pro-rata rights”? A seasoned venture capitalist (in this post, a VC or investor) has seen and invoked these concepts hundreds, if not thousands, of times. You? Maybe not so much.

A has the ultimate authority to direct the management and affairs of a company. Legally, a board authorizes the issuance of ; hires (and fires) senior executives; approves material compensation arrangements; approves the of any ; and authorizes the company to enter into significant agreements.

Creating and maintaining strong working relationships with your directors and building a track record of trust and open dialogue is essential for the success of your company. We've got five tips for managing your private company .