Startup Terms Glossary
What is a Board Observer?
Board observers are startup board members who don’t possess voting rights and are generally sent from investors. In some situations, other board members may ask board observers to leave a room for private discussions unless otherwise agreed. Remaining open to a board observer can open a startup to additional funding opportunities.
Board Observer Examples
Examples of startup financiers who may use board observers include:
- Example 1. Venture capitalists (VCs)
- Example 2. Angel investors
- Example 3. Corporate capitalists (CCs)
- Example 4. Small business investors
- Example 5. Economic business developers
- Example 6: Banks
- Example 7: Credit unions
Here is an article that goes further into Board Observers.