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Ben Horowitz: Running your company without a board after you’ve raised money is a dangerous idea

January 19, 2026

Jack Altman asks a16z co-founder Ben Horowitz how important boards are for startups. Some venture capital firms pitch it as a selling point that they don’t take a board seat and leave the founders alone. Others believe they can add a lot of value by taking a board seat.

Ben responds:

“First of all, boards are important for founders. The idea that you’re going to run without a board after you’ve given equity to employees and sold equity to people who are not you is the most dangerous f’ing idea in the world.”

He explains:

“If you know anything about securities laws, the only protection you have as CEO from going to jail or getting personally sued is that you run material ideas through the board. That’s a massive protection. If you want to give a 2% grant to this person in the company, you have to realize you’re a fiduciary to the rest of the company that you’re diluting . . . If you run that by the board, it’s all good — you’re completely protected, no problem. If you just make that on your own and somebody wants to sue you, they’re going to win. You really have very little defense at that point. The idea that you’re not going to have a board is a bad idea. Once you start not owning the company 100%, you have got to have a board. That’s just how it goes.”