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XWhy a Startup Needs a Board: The Why and How of Constructing a Board Early
Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.
If your business is a corporation, you are required by law to have a board of directors. For many startups, it can seem like just an option. However, there are many reasons startups should aim to form their own board of directors early in their lifecycle.
Does Your Startup Need a Board of Directors?
Yes. Even for experienced founders, a new company comes with new challenges — and an opportunity to make all new mistakes. For first-time founders, you don’t know what you don’t know. The best way to avoid many of these mistakes is to surround yourself with experienced counsel, and a board is a way to formalize that. The primary job of a board of directors is to look out for shareholders' interests, oversee corporate activities, assess performance, assess the CEO and senior management and give feedback about the future direction of the company. Your board should help provide advice and mentorship from people who have been there, done that.
When Should Your Startup Form a Board?
As you start to think about your board as founder and/or CEO, the board can initially be as small as just one director: you.
As the startup grows and evolves over funding rounds, you should expand and include more members. The most standard time to form a board is after the Series A funding round, but some startups choose to after the seed round. Typically, the board expands as the company does from two to three directors (including the CEO) around the Series A, to five to seven directors when the company is in the Series C/D stage to seven to nine directors as it is preparing to go public.
I prefer boards on the smaller side because they can be more collaborative and interactive, but as you create board committees, you will need a larger board in order to have two to three directors on each committee.
Who Should Serve On Your Startup's Board?
One of the best ways to fill a board of directors is to find the people you wish you could hire but may be in positions where it’s not really feasible. For a startup, you should aim for a board with three to five directors. This should include one or more in each of the following categories: the founder, an investor in the company and an independent director.
You’ll want to have some of your investors on the board because they are the ones most rooting for and affected by the financial success of the company. This will also allow them a small measure of control and visibility into the company's progress. Keep in mind it’s important to keep cultivating these relationships for when you need to raise capital down the road.
Additionally, it’s important to have one or more independent directors — a person who is neither an employee nor an investor in the company — on the board early. Ideally, you’ll be able to find another founder, peer, colleague or acquaintance who has been in your seat before and can bring a clear, objective perspective to board discussions. A trusted independent director can let you know if you’re missing an opportunity or taking a step in the wrong direction. Plus, most importantly, help navigate the challenges that arise when the investor board directors may have a different perspective from or disagree with the operating board directors.
Lastly, the diversity of your board is also extremely important. Groups from different backgrounds, genders, races and perspectives make better decisions and improve business outcomes. I recently had a conversation with CNBC’s Julia Boorstin at the dot.LA Summit about this very thing.
A Board Success Story
Throughout my countless years working and growing with boards, I’ve had many opportunities to see just how important a good BoD is. A great example of when a board decision aided my company and me more than expected is from my time at Zillow.
Prior to 2008, investors were looking to invest more money into Zillow — which we didn’t need at the time. One of our board members, Bill Gurley, gave the great advice of “take the hors d'oeuvres when they’re being passed” or take the money when it’s being offered. We ended up taking on the new capital and it was good that we did. When the 2008 financial crisis hit, the extra capital allowed Zillow to weather the storm and take advantage of the moment to expand more aggressively when the market was up for grabs.
It’s small moments like this that led to bigger successes down the road and prove the importance of having a board early.
Final Thoughts
Your board of directors should help you navigate challenges and serve as a trusted sounding board (pun intended) when you need advice. Something most, if not all, founders know by now is that startups are dynamic and constantly evolving, so as your startup scales your board will too. And if you build the foundations of your board thoughtfully, it will aid your startup in the years to come.
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- How To Structure Your Startup's Board: From Pre-Seed to IPO - dot.LA ›
- Three Tips for Working With Your Start-Up Board - dot.LA ›
- Three Tips for Working With Your Start-Up Board - dot.LA ›
- Three Tips for Working With Your Start-Up Board - dot.LA ›
Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.
Niche Launches Web3 Social Platform, Raises $1.8M
Niche wants to bring Web3 communities together.
After raising $1.8 million in a pre-seed round led by MetaWeb, the Los Angeles and New York-based platform launched the beta version of its decentralized, user-owned social media site. Alumni Ventures Group and a NEAR Foundation grant completed the funding, allowing the site to move into its beta stage. CEO Christopher Gulczynski and CTO Zaven Nahapetyan, bringing their respective Tinder and Facebook experience, turned to Web3 as an alternative to ad-driven social media.
Built up with user-owned communities, Niche’s “owner-members” purchase tokens unique to each group. The tokens, which can be exchanged for real currency, can also be used to buy content and attend events on the platform. Gulczynski said distributing ownership among its members re-incentivizes people to invest in smaller, more personal online communities even as it removes ad-driven motivations.
“We saw all the good stuff about Web2, with like connection and facilitating good engagement, but then we also saw the bad of how the larger companies were using that to actually make money,” Gulczynski said. “So I think it's a really unique opportunity now to take that experience and apply it to Web3, so that we can deliver on those promises.”
While at Facebook, Nahapetyan said the company noticed more users turning to private groups and chat threads instead of the ad-heavy news feed.
“It's a big part of why I decided to build Niche because we were like, ‘Okay, people want to be in close-knit spaces around shared identity or interest,” Nahapetyan said. “And if the current apps are not serving that, then there's a huge need that we can fulfill here with what we're doing.”

Crypto scams are easier to pull off on social media, with the FTC stating that Instagram, Facebook and WhatsApp users have lost over $1 billion. As people question the fate of different platforms, Gulczynski said that a platform like Niche has the potential to replace the current social media landscape.
“If we can prove value to like the groups of people that we're going after, we don't have to worry about taking on Meta and Instagram and all that kind of stuff because we'll have made evangelists out of the people that we're providing value for,” Gulczynski said.
Mainstream social media sites are also exploring Web3—Snapchat is testing a feature that would allow users to incorporate NFTs into lenses, and Twitter allows paying subscribers to use NFTs as profile photos.
Even as crypto faces increased scrutiny and creators grow wary of promoting it, there are a growing number of social platforms dedicated to Web3. NBA player Spencer Dinwiddie’s Web3 social media app Calaxy recently raised $26 million while Message seeks to give online chatting the Web3 treatment.
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Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
LA Tech Week 2026: Saturday’s Event Lineup
🔦 Spotlight
LA Tech Week 2026 heads into the weekend Saturday with more opportunities to learn, meet fellow builders and explore what is being created across the region. Browse the day’s events by neighborhood below and find the gatherings worth leaving the house for.
ARTS DISTRICT
5:30 PM
- [WARDROBE DEBUG]: See Details Here
Soullink AI
CULVER CITY
10:00 AM
- Live Models TBD: See Details Here
Visko Platform, Reactor
1:00 PM
- Wafer, Print, & the Entertainment Business: See Details Here
Tallaris Partners
4:00 PM
- Build a voice agent in 3 minutes: See Details Here
Guava
- Tech Week Close Out Party: See Details Here
CarClub
DOWNTOWN
11:00 AM
- TradingDayEvent: See Details Here
silwal.io
2:00 PM
- [DFA Designathon]: See Details Here
Design For America + USC
- South Asians in Space, Physical AI: See Details Here
american south asian network
5:00 PM
- Speak Easy: Pitch Lab Happy Hour: See Details Here
Speech & Mind
7:00 PM
- Tea Tech and Tequila: See Details Here
SFWRUNWAY
LONG BEACH
10:00 AM
- Cars & Coffee: See Details Here
Grid, Vacant.com
12:00 PM
- Tech Beach Party @ Long Beach: See Details Here
Tech by the Beach
LOS FELIZ
8:30 AM
- Griffith Observatory Hike with Longevity Cities & Don't Die LA: See Details Here
Longevity Cities
MARINA DEL RAY
9:30 AM
- The Brazen Capital Walk: Connecting Women, Capital & Opportunity: See Details Here
BrazenEra
6:00 PM
- Build an AI workflow editor, natively in Angular: See Details Here
Workflow Builder
SANTA MONICA
7:00 AM
- Founders Running Club Run in Santa Monica: See Details Here
Founders Running Club, MongoDb
9:00 AM
- MOLTEN - Spatial hackathon (ElevenLabs, AssemblyAI, Rokoko, Datafeel...): See Details Here
Field Lab
2:00 PM
- Founder/Investor Fight Club: See Details Here
Santa Monica Striking
- Matcha & Walk with Longevity L.A.: See Details Here
Longevity Cities
3:30 PM
- The Afterparty for Your Nervous System: See Details Here
Infinity Angels 777
6:00 PM
- The Era of Agentic Networking: See Details Here
Purpose:Labs
7:00 PM
- Hackathon: See Details Here
Builderbase, AI Collective
USC
9:00 AM
- ACM@USC TrojanHacks: See Details Here
ACM@USC
10:00 AM
- 0 to Shipped: See Details Here
LavaLab
10:30 AM
- [CreatorThon]: See Details Here
Intuition Intelligence, Inc.
VENICE
8:00 AM
- Open Air Health Tech: See Details Here
Open Air Health Tech, Bowshock, Govitamins App
10:00 AM
- Be You Louder: Find, Build, Tell Your Story: See Details Here
Be You Louder
10:30 AM
- touch ./SAND - The Voice Agent OUTDOOR Hackathon: See Details Here
Openbase
11:00 AM
- Community Build: Tech 4 Good Hackathon: See Details Here
The Sameritan Project
12:00 PM
- Lovable Hackathon Competition: See Details Here
Lucky Day Labs
6:00 PM
- Bots, Bytes & Bubbles Benefit: See Details Here
Distinguished Minds Institute dba thinqueBytes®
VIRTUAL
9:00 AM
- Ask a VP of Sales: Live GTM Office Hours for Early-Stage B2B Founders: See Details Here
Kat Rucker Consulting Group
11:00 AM
- Sip & Ship: The Un-Hackathon: See Details Here
Your Next Win
WEST HOLLYWOOD
11:00 AM
- The 10x Engineer Showed Up. The 10x Organization Didn't.: See Details Here
Workflow Builder, Tentaro
3:00 PM
- AI, FILM & THE NEW ECONOMICS of CREATIVITY: See Details Here
DIMSUMX
WESTSIDE
11:00 AM
- AI After 5: Pilates & AI: See Details Here
AI After 5
- 🍵 Global Dream Café: See Details Here
Global Dream Team Media LLC
2:00 PM
- Graphic Design & Digital Printing Meetup: See Details Here
Big Frog Custom T-Shirts & More of West LA
7:00 PM
- Tech Industry Speed Networking West LA: See Details Here
Los Angeles Fun Events
Each session provides unique opportunities to gain insights, network, and explore various fields of tech innovation. For updates or more event information, visit the official Tech Week calendar.


