Startup Boards — Brad Feld and Mahendra LIVE AMA NOW

@eriktorenberg Having co-authored several books with different people, there is no one way to do it. In Startup Boards case, we split things up and eventually got a first draft done. I then spent a lot of time editing while @mahendra_gr filled in some of the gaps. I think kept doing editing passes and asking @mahendra_gr for small bits and pieces until we were done.

@bfeld @eriktorenberg I hadn't done a co-authorship and also wanted to respect the pressures on Brad's time. We started with the Table of Contents, and added some meat as we progressed. Brad offered 20/30 CEOs and VCs we ended up interviewing to add color and context. I'd write some and send it over to Brad - he would do the same and we went back and forth. @abatchelor who is Brad's better half even helped edit my Kings' ...err.. immigrants english ;-)

@kunalslab I don't know of a way to do this. I've been on effective and non-effective boards with the same people. The ones that are effective work hard at it.

@kunalslab The best boards are the ones we never hear about - we just see successful companies as a byproduct of their work behind the scenes. Not easy to quantify but we included a set of tools on how the CEo can evaluate their board. We used stuff like engagement, value add, responsiveness and request the CEO to grade each board member at least every year.

@erictwillis Believing and acting like they report to their board. This is a huge mistake that comes up, especially with founders and CEOs who have never been in the #1 role in a company.

@bfeld @erictwillis #secondthat A board is looking to help - CEO's who can ask for help in thoughtful ways can often build a better dynamic with their boards.

@eriktorenberg We wrote a post about it at http://feld.com/archives/2014/02.... While we've published several books, the project wasn't a success so we aren't doing any more going forward. But we learned a lot.

@melissajoykong There are good boards, neutral boards, and bad boards. Even good boards often have big struggles between board members based on perspective and personality. Ultimately, a board should try to (a) do no harm while (b) helping the CEO and leadership team be effective, as long as the board supports the CEO. What is needed here will vary dramatically based on the skills and experience of the CEO. And, if the board no longer supports the CEO, it needs to do something about it.

@melissajoykong - Great question - A board can have a tremendous impact on the startup, just like a coach can make a big difference to any team. The CEO should always be front and center - not the board. And it's the CEO's responsibility to gain trust by being open about strategy shifts.

@melissajoykong The one misconception = entrepreneurs often get into minutae of operational details. Some CEOs get too worried on expenses statements (Should I Spend X on my hotel stay? I had one CEO ask me to weigh in on their logo design and another wanted me to read their blog and edit it. This is all good but the board wants to help with (a) strategy (b) opening doors with customers and investors and (c) financing.

@melissajoykong For me, the best role model is Tom Porter (a VC based in Michigan where I lived). I have also seen Brad do his thing with one group in Florida - it was pretty cool. And my wish list = I would love to be in the room with people like Reid Hoffman, Marc Andreessen and Peter Thiel to see how they engage with CEOs as board members.

@dturneresq I guess I am asking this more as a way to develop myself as a mentor - so I maybe it should read: What makes a good Startup Company Mentor?

@dturneresq A mentor's goal often is to work with you as an individual. This can be one-on-one and often extend beyond the company's dynamics. The Advisory Board member balances your goals with the company progress - it's a broader angle lens.

@dturneresq Being a good mentor is a life long learning process - In working with entrepreneurs, I continue to work hard to (a) listen beneath the surface (b) be a student of human behavior / motivations and (c) ask more often "How can I help?". People engage when they see you are making an honest effort - not necessarily having all the answers, but at least trying.

@ekaterinaklink The CEO and founders cultivate the environment. If they don't believe in it, or think it's a formality, then it will be. If investors view it as a formality, it's up to the CEO/founders to change the view by being deliberate about what they want to accomplish.

@eriktorenberg - VC rock star and co-author @bfeld is joining us today - look forward to your questions on #startupboards

@bentossell The one that sticks in my mind is a sale process with a split board. The largest investor didn't want to sell the company, even though he was making 3x on his own money and 5x on his fund investment (he'd invested separately from his fund). He was not a majority investor and was just unhappy for some reason that was indeterminate. In the midst of a call while we were negotiating the final term sheet, he suddenly yelled out "I do not support doing this deal and I no longer want to discuss it." And then he hung up the phone. The board voted unanimously (without him) to sign the LOI. We then negotiated the deal. It was a medium sized deal (> $100m exit to a public company in cash) so the bankers gave us a fairness opinion. This investor (a) wouldn't talk to anyone on the board, (b) wouldn't resign from the board, and (c) didn't respond to any emails. At the 11th hour, a long time friend called him and asked him to support the deal and he did. But it was a very long six weeks of stress.

@bfeld @bentossell Oh - and I've had similar situations multiple times - this was the most severe.

@bentossell I am sure @bfeld has more stories that I do. One somewhat crazy board story = first time founder CEO walks into their first board meeting - no agenda or packets were sent ahead of time. The meeting starts with everyone staring at each other awkwardly around the table. The founder CEO says, "Soooooooo...what should we talk about?" Neither the board members offered, nor the CEO had asked on how to prepare for their first board meeting.

@mossibat In this case, it sounds like you had a board that didnt know how to support you. There is no easy path when you are "handed" a board. I'd imagine you tried sitting down 1-on-1 with some board members to hear them out/ get them to support your philosophy. Such boards are not the easiest.

@ems_hodge I'll leave that one to @mahendra_gr since he dragged me into it...

@ems_hodge - I am generalizing here. From what I have seen, some investors often do not engage meaningfully. The classic example was one board member who showed up at meetings asking "Can we start the meetings with a reminder on what the company does?' Investors make assumptions on how they can help without asking the CEO and when things dont work, they try to fire the CEO. As @pmarca recently tweeted, then you have 2 problems.

@meidlin First, make sure you are defining pivot correctly. Many people call things pivots that aren't - most businesses are a continuous process of mistakes, iterations, and changes. And, if it's a fundamental pivot, make sure your board is part of the discussion and decision process.

@nathan_yg I would build deep trust with the CEO and find out what keeps them up at night - is it sales? Then help them get some customers? Is it talent - hunt down some people and bring them to their door? In some situations, you may not be able to solve their problems so be mindful of that. My first board meeting (as an investor) was an utter disaster. I was over reaching, talking too much, had an opinion on everything and generally was a royal PITA to the CEO. In hindsight, I feel I should have just "listened more" to the CEO.