Building Your Board

Kelman says founders often have limited choice over which investors join their board, so they should get to know potential members before raising money. He advises prioritizing a strong connection with the individual partner over the firm's brand. For operating members, he found peers at a similar stage more helpful than executives from much larger companies.

Kelman describes an early period of anger and distrust, when he treated the board as an adversary. When he told the board that a project was taking longer and needed more money, Emily Melton responded with practical support rather than ending the effort. Kelman says founders remain accountable for execution, and that sharing real problems helps board members offer useful advice.

Kelman recommends seeking board members who care about the company's mission and listen closely enough to understand its specific problems. He suggests writing role descriptions around the expertise the company needs, involving executives who need mentorship, and spending substantial time with candidates before recruiting them. He also wishes Redfin had added women to its board sooner, noting that employees told him it mattered.

Kelman says boards have defined governance duties, including reviewing budgets and major transactions, while management should make operating decisions. He recommends taking time to consider advice before deciding, and using written documents to explain complex issues and establish a shared account of what is happening. At Redfin, executives prepare for questions, give direct answers, and can say when they do not know.

Kelman advises telling board members when a meeting was productive and sharing what the team wants to get from the next one. Board members can offer better advice after reflecting, so he encourages asking for follow-up thoughts on specific topics. He also checks afterward whether the meeting achieved its intended purpose.