1790: Oversight Through Insight: How Venture Boards Overcome Knowledge Disparity (16442)

We investigate the governance role played by board of directors (BODs) in new ventures and the interplay of both their oversight and insight roles. We illuminate this phenomenon in the context of deeptech ventures and in light of the complementarity in expertise between the BOD and the top management team (TMT). In deeptech ventures, BODs support technical founders with relevant experience in the commercial domain. However, complementarity in expertise also means disparity in knowledge risking potential information asymmetry and translational difficulties as the BOD seeks to provide oversight to the TMT. Using an inductive multiple-case study approach, we triangulate boardroom insights by interviewing governance triads, including the CEO and board members, in eight VC-backed ventures. We identify group processes and illuminate their interaction with board roles. We find that board roles are embedded in a complex interplay of underlying processes resolving techno-economic tensions. We posit an emergent process framework for venture governance, add to discussions around techno-economic human capital, and contribute to venture governance research by integrating and contextualizing dominant corporate governance theories.

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