This Week in Startups
Mastering Early-Stage Board Meetings | Startup Finance Basics w/ Kruze's Scott Orn | E1865
Dec 14, 2023
Scott Orn, COO of Kruze Consulting, brings his startup finance expertise to share dynamic strategies for effective early-stage board meetings. He delves into why VCs prioritize governance and the essential components of a full board packet. Scott emphasizes the importance of a financial flash page and key metrics like cash flow and burn rate to foster productive discussions. He also highlights the role of gross margins in startup viability and how engaging with board members can provide invaluable support for entrepreneurs.
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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.
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