With an equal number of founder elected Directors and VC elected Directors, if your outside tiebreaker director is brought in by the VC's you will be in danger of losing control because you cannot control the situation.
Especially if the tie breaker is planning on doing some additional business with the VC in the future, you may not have a truly neutral person casting the vote.
So, how is founder control typically structured?
For instance, do founder Stockholders get 2 votes per share to elect Directors with, and VC's get 1 vote per share with a guaranteed VC director seat on the board? Or are Directors elected by founders getting 2 votes on a particular decision item A and 1 vote on decision item B, and VC Directors get 1 vote on A and B?
Does anyone know what is currently going on with this?
Especially if the tie breaker is planning on doing some additional business with the VC in the future, you may not have a truly neutral person casting the vote.
So, how is founder control typically structured?
For instance, do founder Stockholders get 2 votes per share to elect Directors with, and VC's get 1 vote per share with a guaranteed VC director seat on the board? Or are Directors elected by founders getting 2 votes on a particular decision item A and 1 vote on decision item B, and VC Directors get 1 vote on A and B?
Does anyone know what is currently going on with this?