What is a Board Seat?
Every board member has a board seat, which makes them eligible to engage in critical company decisions and rule the company by its bylaws. Besides the key company members, board seats are usually given to investors as well. One of the reasons is that when they invest in a startup during one of the priced rounds, they want to make sure that their investment is in good hands. Even if everything turned out positive during the due diligence process, the investor will want to become a board member in order to make sure that the startup makes smart decisions in the future & to have a say in critical company decisions.