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Why a Startup Needs a Board: The Why and How of Constructing a Board Early
Spencer Rascoff
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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Spencer Rascoff
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.
https://twitter.com/spencerrascoff
https://www.linkedin.com/in/spencerrascoff/
admin@dot.la
Inside SoLa and Riot Games’ State-of-the-Art Center in South LA's 'Tech Desert'
06:00 AM | September 07, 2022
Image courtesy of SoLa Impact
It’s a blisteringly hot afternoon as high school students stream out of the Diego Rivera Learning Complex in South Central Los Angeles. What these teens don’t yet know is that a brief walk down the alley behind their bus stops at Central and 60th, there’s an oasis of air conditioning and state of the art gaming equipment waiting for them – SoLa Impact’s Tech and Entrepreneurship Center, sponsored by Riot Games.
The minute the gates on E. 61st street open, it’s easy to forget the clutter and chaos of South Central’s industrial alleys as the clatter of nearby recycling shops fades. But it’s not always this quiet at the Beehive, according to SoLa’s chief impact officer Sherri Francois and director of partnerships Daniel Rosove.
The facility had its grand opening Aug. 11, welcoming in 200 people to explore the campus and learn about SoLa Impact’s various programs, which are run through its nonprofit I CAN Foundation. The next round of programs begins Sept. 11, 2022. There’s a one-time annual $25 membership fee, which includes unlimited access to the Tech Center and its gaming lab. The I CAN Foundation also offers scholarships, and recently helped send 25 students to college this fall.
SoLa’s mission is to bridge the digital divide between the greater L.A. tech economy and its minority population. Its mantra, Francois said, is “if you can see it, you can be it.” Those words are in several places in the Tech Center to remind the students (ages 8-18) who come through the doors of their potential, including a mural and desktop wallpapers in the center’s sparkling new computer lab.
“South L.A. is a tech desert,” Francois told dot.LA. “Less than half our service population have computers in their homes, [and] the majority of our local schools lack any type of technology programming, or tech enrichment… the access to technology training is dismal.”
Riot Games recently stepped up and donated $2 million to help launch the center. Its co-founder and president Marc Merrill also donated funds. Other local sponsors include Snap Inc., which also ran a Snap Summit to teach students about mixed-reality, the L.A. Kings, the L.A. Rams, LiveNation and its CEO Michael Rapino. Additional donors include Oprah Winfrey, NWA’s Arabian Prince, and mayor Eric Garcetti’s Angeleno Connectivity Trust.
“What drew us to SoLa was this was a neighborhood for the kid to kind of come in and see what is possible,” Riot Games’ director of social impact Jeffrey Burrell told dot.LA.
A minimum of 1,000 students are expected to come through the Tech Center’s doors in its first year.
"SoLa has been one of the most impactful programs I have ever been a part of," J.J. Flores, a 2021 SoLa scholarship recipient and current environmental studies major at USC, told dot.LA via email. "SoLa provides me with yearly care packages, they made a mini-doc to feature my story, and they provide me with an incredible network of people that truly believe in my potential and want to see me succeed."
Flores added, "seeing the entire program evolve into a bigger and better thing by the day... with its new tech and entrepreneurship center, a space for community events... is such an inspirational thing because it shows me that they're doing all this because they truly see the potential that South LA students like me have."
Here’s a look inside the Tech Center—though Francois and Rosove both encouraged people to drop by and see for themselves. “Outside of Riot and Snap, we haven’t been able to tap into the L.A. tech industry,” Francois said. “One of our goals is to establish better partnerships,” she said, adding that most CEO’s haven’t yet come to visit, but she’d welcome a drop-in.

First Impressions
Don’t mistake the icon for the London Underground logo–Francois and Rosove told me SoLa’s symbology was inspired by a Google Map pin. SoLa’s I CAN nonprofit is part of a larger umbrella of community initiatives including SoLa Impact, which manages 1,500 apartments for low-income residents, and it was the first to utilize the pin logo, Francois said.
Francois’s brick-lined office is nestled into the right corner when you enter, and on the left there’s some administrative offices. Behind the reception desk is a glitzy wall with glass plaques acknowledging the center’s donors. What really catches anyone’s eye is the neon sign above the check-in desk, proudly proclaiming “powered by Riot Games.”
“Absolutely none of this would be possible without Riot,” Francois said.
Computer Lab and 3D Printers
The computer lab is impressive, with brand-new Macs that would be at home at a visual arts college. Of course, there’s brand-new fiber optic internet, which Rosove said had to be installed from scratch, since the building – and most of South Central L.A. – isn’t wired for high-speed internet. “Most of the internet access is through phones for these folks,” he noted.
An anonymous donor recently contributed 10 3D printers, which will be used in a CAD design program to teach students how to create their own models. On a lab shelf – interspersed with Riot Games memorabilia from its hit “League of Legends” title – Rosove pointed out a couple of freshly printed Easter Island heads ( Moai) made recently by students, giving a big thumbs-up.
Emblazoned in bold colors on the wall dividing the computer lab from the kitchen area is Francois’s mantra, “if you can see it, you can be it.” Heading towards the gaming lab and jam room, there are two walls filled with plaques celebrating SoLa’s 124 scholarship recipients and a tantalizing row of four classic arcade games.
Across from the lab there’s a room for students complete with a green screen and closet retrofitted to be a podcast studio, basically the video production hub. As Francois got her start as a producer for CNN, NBC News and HGTV, it was important for her to have a media room for other people to learn the trade and create a portfolio. “That’s quite a core part of Sherri’s vision of folks have to be really building a personal portfolio as part of their time here,” Rosove said.

LiveNation Jam Room
A paradise for music lovers, LiveNation’s donation to SoLa helped fund its music room, which is complete with a sound board and everything needed to hold an open mic night or create a full band, including a drum kit where Rosove admitted he occasionally blows off steam during the workday.
There are tributes to the greats of West Coast hip-hop scattered around the room, including a framed copy of “The Chronic.” Across the hall there is a brand-new mixing studio funded in part by 1500 Sound Academy and N.W.A.’s Arabian Prince, who wanted SoLa to pass on production and DJ skills to a new generation.
LiveNation collaborated with SoLa on a program where students taking a 10-week course worked with its pros to put on its first local youth-led music festival, which was held on Aug. 12 with 15 live acts.
“It's set this great benchmark for what this program could be and what's really great is five of the students are moving on to internships at Live Nation,” Rosove said.
Virtual Reality and Gaming Lounge
If most students using SoLa’s facilities are accustomed to using their phones to access the internet and game, they’ll be blown away by the tech here. Towards the back of the center there are four gaming chairs and a brand new PS5 and Xbox Series S waiting to be used by eager teens.
Across the way, there are a dozen Oculus headsets in an open space for kids to flail around and experiment in VR. “We piloted an educational software put together through Meta around virtual world building in the spring but didn't quite hit,” Rosove said, noting they’re still working out the kinks.
The Grand Finale
The darkened, LED-lit cavern in the very back of SoLa’s facility is the real draw. It’s the Riot Games esports center, a scaled-down version of the company’s flagship West L.A. gaming arena.
Soon, it’ll be the home base for SoLa’s student esports team, which will compete in Riot Games titles like “Valorant.”
Part arena, part gaming café, this place is all awesome. In the back there’s a DJ booth and professional-grade voiceover booth nicknamed the SoLa Streaming Studio for students to practice “shoutcasting,” or calling an esports match, and tons of TVs to broadcast the action live. Right before the entrance to the green room is a wall of gaming history collected by Francois, including some consoles younger students might never have seen before (feel old yet, Sega Genesis?).
“I guarantee you, coming out of this Tech Center, at some point, you will see the first World Championships right out of South Central,” Francois said about the esports teams. She joked the gaming content is “the chocolate on the broccoli,” the glitzy fun part that gets kids in the door and then inspires them to learn other skills in the gaming world.
Riot’s branding is all over the esports arena, which could also double as an event space – Francois said SoLa’s eager to work with companies for private events to help keep the lights on.
“I will not forget this, we opened the doors [in January] and the first two kids were middle school students – they turned to each other and one, he said, ‘oh my god, is this for us?’ And the answer is hell yeah, it’s for you,” Rosove said.
Editor's note: This story has been updated with additional comment from a SoLa scholarship recipient.
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Samson Amore
Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
https://twitter.com/samsonamore
samsonamore@dot.la
Montgomery Summit Is Back at the Fairmont Miramar
07:58 AM | March 06, 2026
🔦 Spotlight
Hey Los Angeles,
If you’re looking to stack your March with the right rooms and the right people, The Montgomery Summit, presented by March Capital, is coming back to Santa Monica (March 10–11, 2026) at the Fairmont Miramar. It’s been running since 2004, founded by March Capital co-founder Jamie Montgomery, and it consistently draws a tight mix of founders, investors, and execs who show up to have real conversations, not just do the conference lap.
This year’s program is shaping up to be a big one: 1,200+ attendees, 180+ speakers, and CEOs from 120+ carefully selected private tech companies. In other words, if you want early looks at breakout companies and the context you can’t get from a headline scroll, this is one of LA’s most high-signal two-day events.
What I like about Montgomery is the vibe. It’s less “conference chaos” and more “high-signal collisions,” with structured ways to connect, including 1:1 meeting scheduling through the Summit app for eligible attendees. The agenda doesn’t stop when the panels do, there’s a Getty Villa reception and a closing reception, so the Summit keeps moving well past the main stage hours.
It’s invitation-only, but you can request an invitation here.
Keep scrolling for the latest LA venture rounds, fund news and acquisitions.
🤝 Venture Deals
LA Companies
- Vast secured $500M in new financing, made up of $300M in Series A equity and $200M in debt, to accelerate production of its Haven commercial space stations and expand its facilities and team. The round was led by Balerion Space Ventures with participation from IQT, Qatar Investment Authority, Mitsui & Co., MUFG, Nikon, Stellar Ventures, Space Capital, Earthrise Ventures, and founder/first investor Jed McCaleb, as Vast pushes toward Haven-1 and its longer-term successor vision. - learn more
- PartsPulse has raised $3M from UP.Partners and used the momentum to officially launch its unified AI platform at CONEXPO in Las Vegas. The startup says its “command center” combines inventory planning, pricing optimization, and sales intelligence into one system for OEMs, dealers, and fleet managers, and it was built with UP.Labs and co-developed with Wabash to help parts businesses spot revenue opportunities and stock the right parts at the right time. - learn more
- Procode AI launched out of stealth with $4M in venture funding and acquired The Auctus Group, a major revenue cycle management (RCM) firm that bills for 300+ plastic surgery and dermatology providers. The company says the combination will bring AI into private-practice surgical billing, using its “Coding Copilot” to translate operative reports into billing codes faster and reduce denials, while Auctus continues operating under CEO John Gwin. - learn more
- Smack has raised $32M across Seed and Series A to scale what it calls the first “frontier AI lab” built specifically for national security, after landing contracts with multiple branches of the U.S. military in 2025. The Series A was led by Geodesic Capital and Costanoa Ventures, with participation from Point72 Ventures, Felicis, First In, Scribble Ventures, Bloomberg Beta, Washington Harbour Partners, Palumni VC, Fulcrum Venture Group, Anomaly Fund, and Fortitude Ventures. - learn more
LA Venture Funds
- BOLD Capital Partners participated in KeyCare’s $27.4M financing round, backing the Epic-native virtual care company as it scales an AI-enabled model designed to extend health systems’ capacity with 24/7 virtual urgent, preventive, chronic, and virtual-first primary care. The round was led by HealthX Ventures and also included 8VC, LRVHealth, and Ikigai Venture Partners, plus strategic investors such as WellSpan Health, Allina Health, University of Chicago Ventures, Edge Ventures, and Exact Sciences, bringing KeyCare’s total funding to $55M+. - learn more
- Fifth Wall led RenoFi’s $22M Series B, backing the Philadelphia startup’s push to make renovation financing simpler through an AI-enabled platform that underwrites loans based on a home’s after-renovation value. The round also included meaningful participation from Progressive Insurance and additional support from investors such as HighSage Ventures, Alumni Ventures, Flintlock Capital, and Gaingels, plus continued backing from Canaan, First Round Capital, Curql, TruStage Ventures, and several credit union partners. - learn more
- B Capital co-led Bounce’s $5M internal round alongside existing backers Accel and Qualcomm Ventures, extending fresh capital without bringing in new investors. Bounce founder Vivekananda Hallekere told The Economic Times the round underscores continued support from its current investors as the electric mobility startup pushes forward in the EV space. - learn more
LA Exits
- Silent House Group has been acquired by concert staging and live-experiences giant TAIT, formalizing a long-running partnership between the two companies. The deal pairs Silent House’s LA-born creative and production chops, behind major tours and live experiences including Taylor Swift’s The Eras Tour and Kendrick Lamar’s Grand National Tour, with TAIT’s engineering, staging, and global delivery capabilities to build touring, experiential, and broadcast productions at any scale. - learn more
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