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I prefer board observer status over a formal seat every single time. You get full visibility into strategic discussions without accepting legal liabilities or getting bogged down in administrative board voting formalities.
As an early angel, taking a board seat lets you steer governance and protect minority shareholders. However, you must be ready for the legal fiduciary duties and time commitment that comes with formal governance.
Weighs governance responsibilities, fiduciary duties, and liability risks associated with holding board seats in early startups.