The role of an independent board member is a founder's friend - Business Insider

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As founders and VC investors lock horns, startups are on the hunt for 'outside' board directors, Silicon Valley's in-demand job

, said Tayan, who has surveyed dozens of entrepreneurs on their corporate governance. They're also looking for a management background, prior governance experience, or knowledge of banking and accounting.

Asana and Gusto, both late-stage startups that make tools for businesses, tapped seasoned operator Anne Raimondi to join their boards as an outside director earlier this year. She is a expert on executive compensation — something that public companies must disclose — having led operations at Zendesk before it went public in 2014. Her work at Asana and Gusto focuses on this strategy.

She turned to an adviser who she considers an outside director, though her company is so young it doesn't have a board yet. The outside director's feedback "may have more credibility," said Bonatsos, the investor, because they're seen as a neutral party.How independent an outside director is varies from board to board.

"The funny thing is, when you write a $100,000 check, even if you're a multimillionaire, you feel a sense of ownership," Suster said. "'... Feeling that sense of ownership — that I have skin in the game — really matters I think for you to truly make good business decisions."

 

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