Entrepreneurs have to stay strong in a competitive environment, but what do you do when you get fired from your own board?  New York Entrepreneur Week April 2010 brought together a panel of experts to provide their experiences with sourcing a board.  

Rick Kushel, CEO of iLevel Solutions 

Joe Allegra, General Partner at Edison Venture Fund

Gil Beyda, Managing Director of Genacast Capital 

Venture funds invest in companies in hopes to grow success for their future.  Understanding your voting rights and the boards rights on your term sheet is crucial for your success.  Joe Allegra said, "Typically when we invest in companies, we don't want to invest if we don't feel the CEO can take us for 2-4 years".  Entrepreneurs must realize that the roles of being their own employee and CEO can become a conflict.  There has to be a balance between the two roles.

A really great business model and the willpower behind it is completely necessary.  Gil Beyda stated, "A successful start is more or less 1% a good idea, and 99% a good execution".  Your ideas must have validity but at the end of the day investors admit that they fall in love with the entrepreneur.  If they don't feel a connection with you and believe they can work with you, they simple won't commit to you.

"The CEO and the venture fund is a marriage", said Rick Kushel.  The relationship is not just between the CEO and the venture fund but also within the team.  You need to keep the information open between you and your team and understand the make-up from your founder team.  It's also important for the board to openly understand their specific roles.  "We usually like to see the chairman as the CEO, as to make no mistake on who the leader of the company is", said Joe Allegra.

The underlying reason for venture funds is to invest in companies to grow them.  They make honest decision based on the best interest of your company.  There are obvious benefits of having a board, but the key is to control those benefits. 

But, what do you do if you're following these tips and before you know it, your own board has let you go?  Advice from the experts: Realign yourself with the goals of your company.  Transfer the goodwill you've built up between your employees and plant it within your organization. 

- Katie Evans