How to design your company to be Founder-Led:
Many of the smartest investors ONLY invest in Founder-Led companies.
Why? It’s simple…
Consensus = Poor Decisions 😱
Founder-Led companies are empowered to make unpopular decisions, leading to disruption and transformation.
Why? It’s simple…
Consensus = Poor Decisions 😱
Founder-Led companies are empowered to make unpopular decisions, leading to disruption and transformation.
The problem: it’s easy to get a lot wrong as a first time founder.
Corporate governance, by definition, is something first-time founders don't have experience with.
Don't let The Mob use that against you!
Here’s how to SET UP your company the right way:
Corporate governance, by definition, is something first-time founders don't have experience with.
Don't let The Mob use that against you!
Here’s how to SET UP your company the right way:
1/ Supervoting Shares
The best companies in the world have this.
Alphabet, Facebook, Snap… even Berkshire Hathaway.
Supervoting is CRITICAL to maintain voting power 🗳️
Set this up DAY 1.
The best companies in the world have this.
Alphabet, Facebook, Snap… even Berkshire Hathaway.
Supervoting is CRITICAL to maintain voting power 🗳️
Set this up DAY 1.
2/ Supervoting Board Seats
Most founders don’t realize that Board Seats can carry multiple votes.
…They absolutely CAN 🔥🔥🔥
Easy to setup day 1, this becomes nearly impossible to setup down the road.
This is also a day 1 MUST.
Most founders don’t realize that Board Seats can carry multiple votes.
…They absolutely CAN 🔥🔥🔥
Easy to setup day 1, this becomes nearly impossible to setup down the road.
This is also a day 1 MUST.
3/ Common Board Seats for Investors
Most investors will ask for Preferred seats which their firms control INDEFINITELY until IPO.
The result = no accountability... a HUGE problem 😬
*Everyone* in a company should accountability.
Even the CEO can be fired.
Most investors will ask for Preferred seats which their firms control INDEFINITELY until IPO.
The result = no accountability... a HUGE problem 😬
*Everyone* in a company should accountability.
Even the CEO can be fired.
The best investors should say “I’m willing to earn my seat.”
Our Bolt Board members have this mentality ⚡️⚡️⚡️
The result: they crush it for us every day.
Our Bolt Board members have this mentality ⚡️⚡️⚡️
The result: they crush it for us every day.
4/ High Bar to Terminate for Cause
The Board has an important right: to Fire the CEO.
Make sure you know exactly how that goes down.
It should only be “For Cause”.
And the definition of “For Cause” should be an extremely high bar.
The Board has an important right: to Fire the CEO.
Make sure you know exactly how that goes down.
It should only be “For Cause”.
And the definition of “For Cause” should be an extremely high bar.
Also important: your attendance should be required for any meeting where this vote takes place.
So that The Mob can't make it come out of nowhere 😀
So that The Mob can't make it come out of nowhere 😀
5/ Hire for Values
No matter how well you setup your governance,
The people around you each and every day matter most.
Too many founders will hire for skillset, prioritizing talent over values.
Evaluate teammates and investors by VALUES and if they’re all-in on yours.
No matter how well you setup your governance,
The people around you each and every day matter most.
Too many founders will hire for skillset, prioritizing talent over values.
Evaluate teammates and investors by VALUES and if they’re all-in on yours.
6/ Be Clear about Who You Are
I want everyone to know what they’re signing up for.
The goal: no surprises 👍👍
People should know who they’re investing in / working for, and what you expect.
For me, I expect my people to be ALL-IN while also prioritizing their health.
I want everyone to know what they’re signing up for.
The goal: no surprises 👍👍
People should know who they’re investing in / working for, and what you expect.
For me, I expect my people to be ALL-IN while also prioritizing their health.
7/ Have a legal team you trust
Most legal teams do a lot of work with The Mob and are more on their side than yours.
Find attorneys you resonate with.
Who you trust.
Who are GOOD at their job.
And who have a reputation of being a good defender of companies 🛡️
Most legal teams do a lot of work with The Mob and are more on their side than yours.
Find attorneys you resonate with.
Who you trust.
Who are GOOD at their job.
And who have a reputation of being a good defender of companies 🛡️
8/ Have Impeccable HR
HR is one of the most important functions to run well inside a company.
Done poorly, it can ruin everything 😳
Don’t let HR be your achilles heal.
Run a high integrity company.
And have an outstanding HR function.
HR is one of the most important functions to run well inside a company.
Done poorly, it can ruin everything 😳
Don’t let HR be your achilles heal.
Run a high integrity company.
And have an outstanding HR function.
That’s it… 8 steps to setting up your company the right way.
Making it founder-led out of the gate.
And KEEPING it that way 💪💪💪
Founder-led companies enable fearless, bold decision making.
This is what takes the world forward.
I hope to see many more of them!
Making it founder-led out of the gate.
And KEEPING it that way 💪💪💪
Founder-led companies enable fearless, bold decision making.
This is what takes the world forward.
I hope to see many more of them!
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