Every Venture Needs a Heartbeat

I often hear people question whether board meetings are helpful or if attending them provides any real value. Vinod Khosla is famous for challenging their usefulness, as illustrated in this quote from TechCrunch:

"I'm not a big fan of governance; I think if you engage as a team member with a founder, you have much more influence than if you're sitting on a board and voting," he said. "Other VCs accuse us of being very active and very engaged — but the flip side of it is they vote on boards. We don’t — no matter how important an issue."

Khosla added, "It isn't the VC's job to sit on a board and vote... there’s a hard line you don’t cross, which is don’t make founders or management do things they don’t want to do by voting." Instead, he spends his time where he believes it counts: "I spend more time doing decks for presentations for our founders than almost anybody I know."

I understand his perspective, but I disagree.

First, I agree that there is often greater value in being a coach and advisor—working alongside founders on tough issues—than simply attending a board meeting. I also agree that forcing founders to do things they don’t want to by leveraging board votes is a mistake. Founders live and breathe their company’s challenges, spending countless hours tackling critical issues, while board members contribute in focused bursts. Insisting that they follow your direction can not only be misguided but also risks undermining their autonomy and momentum.

However, what is often overlooked is that board meetings are the heartbeat of a venture. They require the founding team to provide a comprehensive update on their progress—covering everything from key metrics and financials to product updates, market positioning, challenges, and the team's vision for the future. This rigorous preparation, which includes reporting on key milestones and challenges, drives accountability, alignment, and a sense of purpose.

The very act of preparing for a board meeting compels the team to address the most critical aspects of their business—without delay or excuses. Like a theatrical performance, "the show must go on." That level of commitment—ensuring everything is ready for "opening night"—is vital.

Also, for that commitment to be meaningful, the board must be respected, engaged, and valuable to the venture. If the VCs and other investors aren’t part of the board, the team won’t care about “opening night” anyway.

In my experience, without this regular cadence, urgency fades, progress stalls and the team's energy dissipates. The board meeting creates a rhythm, a pulse that pushes the venture forward, fostering rigor, focus, and collective commitment. Just as in humans, without a heartbeat or with an irregular one, a venture will die.

So, while there is wisdom in being a trusted coach rather than a directive authority, let’s not underestimate the value of that heartbeat—the board meeting—that ensures that everyone is ready to perform at their best.

Your Venture Coach,

Norman