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Just yesterday I discussed my encounter with Professor Mark Long, a business expert who has been involved in 68 different ventures, and particularly his insight into the incubator process. Long also discussed, however, the utmost importance of having a stellar Board of Directors. From his experience, an under-performing board of directors can destroy a venture. In fact, he believes that it is the second leading factor to why companies fail (the first one is a secret). Long is a strong proponent of a talented and dedicated Board of Directors and believes that only lifestyle companies can remain without a board.

Long discussed several best practices that he has observed over the years in the most successful boards:

1) Boards are composed of 9 or 11 individuals (Odd numbers only)

2) Board Members are paid. With non-paid board members you get what you pay for (nothing). If it is very early stage a nominal equity stake can be used as compensation

3) Good people to have on your board:

a) 2 people that have nothing to do with industry that can have an outside perspective

b) 1 retired mentor from industry

c) 1 general business expert

d) 1-2 young and energetic people

Most importantly, Long advised getting people on board that will give their honest opinion and are not there just to please you

Other useful tips on boards:

- Have a clear agenda and committed board members

- Make sure board meetings are in person on a quarterly basis (no more no less)

- Organize the board right after the angel round. Having impressive board members is very attractive for Venture Capital firms