a16z Podcast | Boards and the Power of Networks

Podcast Overview

• Host and Guests: The A6NZ podcast features host Sonal alongside Sukhinder Singh-Cassidy (Founder/CEO of The Board List and Joyous; former executive at Google; serial entrepreneur) and John Chena (Silicon Valley Bank).
• Primary Objective: The discussion focuses on the launch of The Board List, a curated marketplace designed to increase gender diversity on private company boards by connecting qualified female leaders with startup founders.

Foundational Context and Personal Trajectories

• Sukhinder's Career Arc:
  • Arrived in Silicon Valley in 1997, sleeping on a couch for three months before founding her first company, Yodley, in 1999 (financial data aggregation).
  • Yodley became the dominant provider of personal financial data; it went public last year and is currently in acquisition talks.
  • Spent six years at Google (2004–2010) leading local, maps, and international expansion (Asia Pacific, Latin America, China, Brazil), effectively managing "18 little fiefdoms."
  • Founded Joyous to pursue independent entrepreneurship after feeling she could not advance further to a CEO role within Google.
• Motivation for The Board List:
  • Initiated by Sukhinder's "Choose Possibility" open letter on Recode, which surveyed over 300 female founders regarding their experiences.
  • Driven by the thesis that while public narratives on diversity are dire, the actual supply of entrepreneurial talent remains robust and positive.

Survey Findings on Female Entrepreneurs

• Family Background:
  • 55% of surveyed female founders came from entrepreneurial families.
  • Parental Profession Patterns: Fathers most commonly held roles as CEOs, engineers, or entrepreneurs; mothers most commonly were teachers, creating a specific "killer combo" of parental influence.
• Demographic Gaps:
  • The vast majority of female entrepreneurs surveyed identified as White or Asian, with minimal representation from Hispanic, Latino, and African-American communities.
• Sentiment Analysis:
  • 88% of women surveyed said they would wholeheartedly recommend entrepreneurship.
  • The 12% who did not recommend it cited personal fit concerns for their daughters or advisees rather than gender bias.
  • Gender was ranked as a "very small signal" in the factors required for entrepreneurial success.

The Board List: Structure and Methodology

• Core Definition:
  • A beta, curated marketplace (not a static ranking list) connecting vetted women with private company boards.
  • Currently in operation for less than three months.
  • Comprises over 700 endorsed women leaders backed by a network of 100 tech leaders (approx. 30 VCs, 70 operators).
• Operational Model:
  • Endorsement System: Requires non-anonymous references; endorsers must be willing to take board calls and stand behind the candidate's suitability.
  • Scalability Mechanism: Designed as an open network to break the "clubby" opacity of traditional board recruitment, moving away from reliance on first-degree connections.
  • Membership Criteria: High bar for entry to ensure board competency, but with a published open application process to avoid exclusivity.
• Strategic Distinctions:
  • Not a "Women for Women" Effort: Nominators include men and women to ensure diverse networks are co-joined and focused on talent and performance rather than gender silos.
  • Marketplace Dynamics: Functions as a two-sided market: high-quality supply (endorsed women) meets demand (CEOs seeking board members).

Market Data and Board Composition Trends

• Current Statistics:
  • Only 25% of boards at VC partners involved with the initiative have at least one female member.
  • Female representation numbers are often skewed by the presence of female investors; the actual number of independent female board members is likely lower.
• Underutilized Capital Structures:
  • The Opportunity: Founders rarely utilize "common stock" positions to create new, independent board seats; most boards consist solely of VC representatives and insiders.
  • Proposed Solution: Creating net-new independent seats (often via common stock) rather than displacing existing members.
  • Target Audience: The initiative targets Series B and beyond startups, which typically have the most capital and board complexity but lack independent operational voices.

Arguments for Independent Board Members

• Strategic Value During Crisis:
  • Independent operators provide critical perspective when companies face "hellish days" or bad quarters, preventing knee-jerk reactions from VC-heavy boards.
  • Risk Mitigation: Founders face high risk if the board lacks diverse viewpoints during downturns; independent members offer experience-based stability.
• Risk Profile Comparison:
  • Board seats in private companies are characterized as "low risk, high opportunity" compared to executive team hires.
  • Terms: Short terms (e.g., one year) allow for flexibility; CEOs can dissolve the arrangement if the dynamic is not working.
  • Decision Power: One vote in a five- or six-person board has limited control, reducing the fear of a "takeover" by an outsider.

Future Roadmap and Call to Action

• Immediate Actions:
  • Launching a series of "salons" across the US East and West Coasts to challenge CEOs and VCs to reconsider independent board seats.
  • Publishing specific criteria for endorsing members and candidates to ensure transparency.
• Application Process:
  • Women can apply to be listed as candidates via theboardlist.com, though self-nomination without endorsement is not currently permitted; applications must include an endorsement.
  • Founders can submit board search needs directly to the platform.
• Long-term Vision:
  • The platform currently focuses on tech-sector gender diversity to "solve the problem in our backyard."
  • Sukhinder notes that once the model is proven, it has utility for other underrepresented minorities, nonprofit boards, and public companies, though the immediate focus remains on the tech ecosystem.
• Forward-Looking Statement:
  • Sukhinder predicts that once a series of successful independent board experiences occurs, the industry will move quickly to crystallize a movement.
  • John Chena emphasizes that the goal is to catalyze a shift in behavior where VCs and founders view independent, diverse seats as a standard for company performance.