Heidi Roizen: "A Good Board Member Has to Be Willing to Speak Truth, Even When It Is Unpopular"

Start of Interview [1:32]Heidi's origin story and career pre-venture capital [2:00]Heidi's first board experience: Great Plains Software prior to its IPO in 1997 [6:01]Joining Softbank Venture Capital (Mobius Venture Capital) in 1999 [09:09]The HBS Heidi Roizen Case Study [12:50]Her experience with foreign boards (UK, Canada) and take on transnational directors [16:21]Re-entering the VC market with DFJ and Threshold Ventures [23:25]Private tech company board governance challenges [25:36]Startups staying private for longer, and getting bigger [25:48]Change of terms based on cyclical nature of the market ("dual class shares is a grey area") [26:31]Founder-friendly terms [29:55]To be a good investor or board member "you have to be willing to speak truth even when unpopular" [31:48]Dealing with "dual fiduciary duties": be clear about what hats you wear (investor vs company) [32:08]There will be a "flight to quality" in venture investing [37:06]Director Independence in Silicon Valley, social ties and networks [38:56]Distinctions between serving on public and private venture-backed boards [42:27]Her joke-caution to entrepreneurs: "be careful what VC you pick, because it's harder to divorce your VC than your spouse!" [45:34]Board self-evaluation. "Collegiality doesn't mean that you're only nice and friendly to each other, but it also means that you have to have a working relationship where you can be honest with each other." [46:16]On the CA corporate board gender diversity bill (SB-826) [48:35]Heidi's views on stakeholder capitalism or ESG: "I think that companies earn the right to satisfy a broader stakeholder base by also remaining viable." Big difference between private and public companies in this regard [51:47]Her favorite books: "Thinking Fast and Slow" by Daniel Kahneman, "Atomic Habits" by James Clear, "Loving What Is" by Byron Katie with Stephen Mitchell, "Never Split the Difference" by Chris Voss [56:15]Heidi's mentors: her father, Bill Gates, Ann Winblad, Tina Seelig, Emily Melton and Josh Stein [57:25]Her favorite quote is The Shirley MacLaine 20/40/60 Rule: “At 20, you care what everyone is thinking about you. At 40, you don't give a damn what people are thinking about you. At 60, you realize no one is thinking about you." [58:38]Her "unusual habit": she's a glass artist [01:00:15]The living person she most admires: Bill and Melinda Gates "In 100 years from now, when people look back to Bill and Melinda,  Microsoft is only going to be a footnote. What they do as philanthropists is really what people will talk about." [01:01:05]How to find Heidi online:www.heidiroizen.comEmail: [email protected]___Music/Soundtrack (found via Free Music Archive): Seeing The Future by Dexter Britain is licensed under a Attribution-Noncommercial-Share Alike 3.0 United States License  You can follow Evan on social media at:Website: boardroom-governance.comX: @evanepsteinLinkedIn: https://www.linkedin.com/in/epsteinevan/ Substack: https://evanepstein.substack.com/YouTube: https://www.youtube.com/@BoardroomGovernance__To support this podcast you can join as a subscriber of the Boardroom Governance Newsletter at https://evanepstein.substack.com/__Music/Soundtrack (found via Free Music Archive): Seeing The Future by Dexter Britain is licensed under a Attribution-Noncommercial-Share Alike 3.0 United States License