This Week in Startups

Mastering Early-Stage Board Meetings | Startup Finance Basics w/ Kruze's Scott Orn | E1865

Dec 14, 2023

28:28

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Scott Orn, COO of Kruze, joins Jason to discuss best practices for early stage startups in board meetings. Topics include reasons VCs want governance, what should be in a full board packet, formal things investors look for, common questions on operational metrics, examining R&D and engineering expenses, and adding subscription revenue to manufacturing businesses.

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Quick takeaways

Founders should present financial metrics early in board meetings to build credibility and address investor concerns.

Accurately allocating costs and presenting in-depth metrics specific to the business model helps investors gauge company performance and potential.

Deep dives

The importance of early stage board meetings and investor confidence

Early-stage startups that have raised seed funding and are experiencing growth often engage in quarterly board meetings with venture capitalists (VCs). VCs have multiple goals for these board meetings, including fulfilling their fiduciary duty to their limited partners and using their expertise and networks to increase the value of the company. Founders should prepare for board meetings by finalizing their financial statements, creating a standardized board deck, and distributing the board pack to members with ample time for review. By presenting financial metrics, including cash, burn rate, runway length, and revenue run rate, early in the meeting, founders can quell concerns and build credibility with their investors.

Tailor Financial Updates to Diverse Board Members

01:29

Preparation is Key for Board Meetings

01:29

The Importance of High Gross Margin for Investors and VCs

02:09

Introduction

3min

Finalizing Financials and Sending the Board Pack

2min

Pre-Socializing Issues and Financial Packages for Startups

3min

The Importance of Financial Flash Pages at Board Meetings

10min

Adding Subscription Revenue to Manufacturing Businesses

7min

Maximizing Board Meetings and Seeking Feedback in Early-Stage Startups

3min

Today’s show:

Kruze COO, Scott Orn, joins Jason to discuss best practices for early stage startups to prepare for and execute successful board meetings. The two dive into the reasons VCs want governance through board meetings (00:56), what should be in a full board packet (6:51), formal things investors look for (11:10), and much more!

Timestamps:

(0:00) Kruze COO, Scott Orn, joins Jason (00:56) The reasons VCs seek governance in startups and key tips for developing a standardized board presentation (6:51) Building a startup financial package and the importance of presenting a financial flash page at the start of a board meeting. (11:10) Essential factors investors consider during a board meeting (15:08) The most common question regarding in-depth operational metrics (20:51) Examining R&D and engineering support expenses in the calculation of the cost of goods sold * Check out Kruze: https://kruzeconsulting.com * Follow Scott: https://twitter.com/scottorn

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