Board Seats Demanded

Board Seats Demanded defined: Board seats demanded is the number of seats on the Board of Directors sought by an investor. Because their investments are so risky, angel and venture capital investors typically insist on being given 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 as a whole, which may at times be different from the interests of the VCs.

Above is a definition for “Board Seats Demanded” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.

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