Insight certainty 3/5 debate potential 4/5

Seed-stage startups should not have formal boards of directors

Jeff Fagnan · 20VC: Why Partners Are There To Save Each Other From Themselves, Why Effective Reserve Allocation Is The Hardest Question In Venture & What Makes The Truly Special Board Members with Jeff Fagnan, Founding Partner @ Accomplice · Aug 13, 2018 · at 30:30

Jeff Fagnan, Founding Partner at Accomplice, discusses startup board dynamics and governance on 20VC.

0:00 / 0:09exact quote · 9.6s
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“First off, I don't think seed stage companies should have boards, I really think that they can get misdirected when all they really should be focusing on is talent aggregation and product market fit.”

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More from Jeff Fagnan

Insight
Individual partner accountability beats large VC consensus committees
“Fewer people taking deeper accountability for decisions was much better than this approach.”
Jeff Fagnan Aug 13, 2018 ▶ 12:03 20VC: Why Partners Are There To Save Each Other From Themselves, Why Effective Reserve Allocation Is The Hardest Question In Venture & What Makes The Truly Special Board Members with Jeff Fagnan, Founding Partner @ Accomplice
What-if
Consensus decision-making cost Atlas Venture the Dropbox seed round
“And if that would have been the case, you know, Dropbox, we would have led to see the series a and probably kept a drew in Boston and it would have just changed everything.”
Jeff Fagnan Aug 13, 2018 ▶ 15:21 20VC: Why Partners Are There To Save Each Other From Themselves, Why Effective Reserve Allocation Is The Hardest Question In Venture & What Makes The Truly Special Board Members with Jeff Fagnan, Founding Partner @ Accomplice
Disclosure
Accomplice does not reserve follow-on capital for $1.5M seed checks
“When we write an initial seed check of say a million and a half, we are usually not reserving behind that company.”
Jeff Fagnan Aug 13, 2018 ▶ 18:52 20VC: Why Partners Are There To Save Each Other From Themselves, Why Effective Reserve Allocation Is The Hardest Question In Venture & What Makes The Truly Special Board Members with Jeff Fagnan, Founding Partner @ Accomplice
Insight
Force-ranking early-stage portfolio companies is a dangerous practice
“Forced ranking at an early stage portfolio is really dangerous.”
Jeff Fagnan Aug 13, 2018 ▶ 19:49 20VC: Why Partners Are There To Save Each Other From Themselves, Why Effective Reserve Allocation Is The Hardest Question In Venture & What Makes The Truly Special Board Members with Jeff Fagnan, Founding Partner @ Accomplice
Prediction Not checkable as stated
Accomplice concentrates capital in portfolio companies under a $50M valuation
“And for a two hundred million dollar seed-led fund, we are trying to concentrate capital at a sub-fifty million dollar valuation.”
Jeff Fagnan Aug 13, 2018 ▶ 22:28 20VC: Why Partners Are There To Save Each Other From Themselves, Why Effective Reserve Allocation Is The Hardest Question In Venture & What Makes The Truly Special Board Members with Jeff Fagnan, Founding Partner @ Accomplice
Assertion Supported
Atlas allowed partners to write $1M checks on individual conviction
“We set up where any partner on their own conviction could write up to a million dollar check on meeting an entrepreneur.”
Jeff Fagnan Aug 13, 2018 ▶ 15:35 20VC: Why Partners Are There To Save Each Other From Themselves, Why Effective Reserve Allocation Is The Hardest Question In Venture & What Makes The Truly Special Board Members with Jeff Fagnan, Founding Partner @ Accomplice
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