Board Seats

Board seats demanded is the number of seats on the Board of Directors sought by an investor. Because of the risky nature of early investments, angel and venture capital investors typically demand considerable control of the company in exchange for their investment. This raises questions of loyalty and conflict of interest. VCs seek Board seats in order to protect their interests; but Board members have fiduciary obligations to promote the interests of the company, which may at times be different from the interests of the VCs.