Fundraising Fundamentals: Board Basics

From your initial board meeting post-close to regular updates, understand what's expected.

By, Zaz Floreani, Partner @ FirstMile Ventures

Closing your first round of institutional funding is definitely an exciting milestone. It's a milestone that almost always comes with a board of directors which is a group of people who oversee a company's activities and performance and represent the interests of its shareholders. While you, the CEO and the board are on the same team, you have different responsibilities - essentially, the board governs, while the CEO manages. The most important thing to remember is that the board is there to help the company be successful.  Board meetings should not be just updating the board but an opportunity to work together to advance the business.  From your initial board meeting to providing regular updates, understanding board expectations is essential. In this last post of our Fundraising Fundamentals series, we'll break down the essentials of board management and offer insights and best practices to help you build a productive and collaborative relationship with your board.

Communications
Discuss with your incoming board what level and frequency of communications they expect from their portfolio companies. Some seed funds prefer monthly updates and others weekly - so it varies. We prefer monthly updates that are short and cover critical KPIs (e.g. ARR, churn, burn, etc) and the top three goals you are focused on. The latter could be getting to $1M ARR watermark or releasing a key product build, or hiring a mission-critical C-level team member. The monthly cadence allows enough time to see progress (or roadblocks) on larger goals while at the same time not overburdening the founder with reporting for the sake of reporting.  And always include “asks.”  Your board and other investors are incentivized to help you.  Updates are nice to get, but they are more valuable to the company when they include what challenges and obstacles you need help breaking through.

Our goal is to be your thought partner as you encounter forks in the road or hit bumps and opportunities to accelerate. So use your board as a sounding board (no pun intended), when you are debating options. There is no hourly charge to talk or text. If a 30 min call can help you avoid any common pitfalls of having to fire a key employee or means you sign a customer contract with more favorable terms, it was worth it.
As with anything in life, no one likes surprises. So if there is a critical setback or unexpected gain, do not wait to tell your board members until the next monthly email update or board meeting. 

Board Meetings: Setting the Stage for Success

• Frequency: Hold board meetings at least quarterly. As your company matures, you may increase the frequency to bi-monthly.
• Preparation: Distribute the board deck at least 24 hours in advance to give members time to review the material.
• Pre-Meeting Calls: Consider holding pre-meeting calls with individual board members. This allows you to share any sensitive information in advance and gather feedback, ensuring a more productive board meeting.
• Agenda: Create a clear agenda and stick to it. Respect everyone's time by starting and ending on schedule. If needed, schedule a follow-up meeting to address additional topics.

Crafting an Effective Board Deck

Often, half the value of the meeting comes from the leadership stepping back from the day to day to organize their thoughts around how they’re tracking towards key milestones and whether they need to make any adjustments. Your board deck should be concise, clear, and data-driven. Highlight key metrics and progress towards goals. Sharing numbers over time paints a picture of the true state of the business and its trajectory. Use visuals to tell the story of your company's growth and trajectory.  The key here is getting out the info you need to drive a productive discussion, it doesn’t need to be pretty and take long to produce.  We’ve seen companies have successful meetings with a well-organized Google doc

There are loads of suggested templates out there for founders to choose from. We do not have a FirstMile preferred one as we want founders to pick one that works for their business and one that they find useful. Your deck should typically include the following:

• Meeting Agenda: Outline the topics to be covered.
• CEO Summary: Provide a high-level overview of the company's performance, highlighting key achievements and challenges.
• Financial Performance: Present key financial metrics, including revenue, burn rate, cash balance, and headcount.
• Sales Performance: Discuss sales progress against targets, pipeline health, and key customer wins.
• Marketing Performance: Highlight marketing initiatives, partnerships, and events.
• Product Update: Share product engagement metrics, roadmap updates, and user feedback.
• Customer Success: Discuss customer satisfaction metrics, onboarding processes, and customer testimonials.
• Company Building: Provide an update on hiring, team structure, and organizational changes.
• Deep Dives: Use this section to discuss specific business challenges, opportunities, or strategic initiatives.

​Keep in mind our board deck is a tool for communication and collaboration. Use it to foster a productive dialogue with your board and to ensure alignment on key priorities as you build your business.

Remember: Building a strong relationship with your board takes time and effort. By maintaining open communication, providing regular updates, and seeking guidance when needed, you can leverage their expertise to drive your company's success.  You’re in this together so take advantage of their desire to help.