There are three reasons that we feel strongly about the need for a board seat.  

First, we invest in companies because we believe we can add value.  Serving on the board is one of the best ways to add value.  In earlier stage investment deals, particularly larger ones, the BOD is very active, conducting monthly meetings as well as meeting between BOD meetings as needed. Directors participate in developing the business plan, helping with client contacts, consulting with the CEO, raising debt, making introductions to VCs or strategi partners. 

 It is critical that you have a  “value-added” board and that the investor board members should have industry experience. based on expertise and industry relationships.

Second, having a board seat ensures strong, positive, ongoing communication.  It is essential that the company and the investors have a good working relationship, and board participation can enable this relationship.

Third, having a well-structure board is important to the company's growth and attractiveness to VCs, prospective customers, and strategic partners.  Best governance practices show that a  Board of Directors (BOD) at the angel investment stage typically consists of two company seats, two investor seats, and one independent seat for a total of five Directors.