Raising $1.5M seed round. Lead investor ($750K) wants a board seat. I'm a solo founder. Is this normal at seed stage? What should I push back on?
Raising $1.5M seed round. Lead investor ($750K) wants a board seat. I'm a solo founder. Is this normal at seed stage? What should I push back on?
At seed with a $750K lead, a board seat is common but not mandatory. Typical structures:
Option 1: 3-person board (you + investor + independent). This is standard for seed with institutional investor.
Option 2: 2-person board (you + investor). Simpler but creates potential deadlock.
Option 3: Board observer seat instead. They attend meetings but can't vote. Good middle ground.
What to negotiate: Founder protective provisions (you can't be fired as CEO without board supermajority), independent director nomination rights, clear scope of matters requiring board approval.
My seed investor has a board seat. Honestly helpful — forces me to have structured monthly updates, gives me someone to pressure-test decisions with, and they actually helped recruit my VP Eng.
The horror stories are about Series A/B when you lose board control. At seed, you should still control the board if structured right.
Key question: Who picks the independent director? If you do, you effectively control the board 2-1. If they do, they control it. If it's mutual agreement, it can stall.
Standard is mutual agreement but you should have the tiebreaker. Also: don't fill the independent seat right away. Keep it open until you find someone actually useful, not just a checkbox.
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