Question

Answer the following in a well detailed post:

To what extent is it a conflict of interest for early stage investors to sit on start-up corporate boards?

Answer 1

When we find an early stage investor sitting or investing in a Startup corporation board, it is very much beneficial for the company, because as we know that an investor invest their money after examine or researching about their starup plans or ideas, if the investor are satisfied then the investor money, and now if we consider that they are sitting on their corporate boards, it will be most beneficial step.

Few assumptions should be kept in mind such as:-

• After deciding their board of directors, they should think when do they need them
• What will the main aspects of the board members
• How many other directors are there in the boards, or how much do they are important
• How does they meet and work along with each other

These are the main or general point which if kept in mind, then an investor who is sitting in the corporate board, will give them company a huge conflict of interest and its extend will rise high as time passes.

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