What to do when a pre-seed investor is writing a sizable check and insists on a board seat ? First let’s discuss round and check size. If the round is $4m - $5m and check is $2m - $3m I can see this coming up. When the round is $1m and check is $250k it makes no sense. Regardless if the founders don’t have a choice and need to take the capital but don’t want to give a board seat but investors insist on it what to do ? The best compromise is give the seat but make it expire at the following financing. This should work well and is fair if investors insist on having an oversight until the next round. If the small check investor doesn’t agree and wants to hang on the board permanently this is a massive red flag 🚩 imo and the founders should consider walking away. If the investors agree to expiration at the next round it’s fine for the founders as they will continue to maintain control and will expand the board as the company scales.