I am the sole founder and owner of a limited company.
I am considering to find an angel investor not only for financial reasons but also to have somebody experienced to give valuable input - therefore I would like to have the investor as non-executive director so that he/she will seat on the board and have regular meetings with me.
Does that make sense?
If so, my question (probably silly, sorry!) is, how will that decrease my control over the company, assuming the investor will get something around 10 or 20% equity?
I read decisions in the board are taken based on a raise of hands. Being just 2 person-board, does that mean I can't take any board decision without his/her approval, despite me being the majority shareholder? Will I need to address that in the term sheet? Should I use supermajority or veto rules? Or, if I want to keep the control, I shouldn't give them a seat in the board, but just make them "join the conversation" as mentors or advisors?
Apart from that, in what other ways my control will be diminished?