How to build a board that actually helps
A board is not a governance formality. At its best, it is one of the most valuable assets an early-stage company has — a group of experienced people with aligned interests who can help the founder think through hard decisions, open doors, and provide accountability without micromanagement. However, at its worst, it can be a huge source of friction, misaligned incentives and wasted time for the founders.
The difference between the two usually comes down to how the board was built, not how it is run.
The board you need at pre-seed
At pre-seed, most companies don’t have a formal board at all — or they have a very simple one consisting of the founders and perhaps one external director. This is appropriate. The company is still finding its feet, the product is changing, and governance overhead should be minimal.
What matters more at this stage is having the right advisors — people with relevant domain expertise who can give honest counsel without the formal weight of a board seat. These relationships are often more useful than a formal board in the first twelve to eighteen months.
When to formalise the board
Most companies formalise their board around their first institutional raise. This is typically seed or Series A. At this point, investors will often take a board seat as a condition of investment. This is the moment to think carefully about composition, because the board you build at this stage will shape the company’s governance for years.
What good board composition looks like at seed stage
A typical seed-stage board might consist of:
• The Founder (and co founder): Both the CEO and co-founder, where there is one, will typically sit on the board as of right. Founders often outnumber or are in balance with investor and independent directors at seed stage — this is entirely normal.
• One investor director: The lead investor will usually take a seat. Their job is to be a constructive challenge, not a veto. Follow funds may try to get observer seats but these should be kept to a minimum (often linked to % equity held)
• One independent non-executive director: This is often the most valuable seat. A well-chosen NED with deep sector experience, relevant network, and no direct financial stake (other than options) can be extraordinarily useful. Finding the right person takes time, but it’s time worth spending.
What makes a board genuinely useful
Honest challenge, not just support
The best board members ask the questions founders don’t want to be asked. A board that only validates is not doing its job. Founders should look for people who will push back respectfully, not just people who will agree with everything that is suggested.
Relevant experience, not just impressive credentials
A former FTSE100 CEO is not automatically a useful board member for a pre-seed B2B SaaS company. Domain and stage expertise matters more than prestige. The question to ask is: has this person navigated the specific stage and challenges we are facing, or are they pattern-matching from a very different context?
Network that opens doors
The most tangible value a board member can provide at early stage is introductions — to customers, to hires, to future investors. This should be explicit, not assumed. When bringing on a board member, it’s reasonable to ask directly: who are three people you could introduce us to in the next six months?
A portfolio example: Ventrata
Ventrata is a good illustration of how board composition evolves as a company scales. In the early days, the board was small, informal, and met infrequent. It was mainly focused on the immediate challenges of building the product and finding product-market fit. As the company grew the board became more structured, more regular and with more expertise around the table. Its priority has changed from short term operational challenges to longer term strategic planning. The board changed because the needs changed.
The lesson is not that you need a sophisticated board from day one. It’s that you need to think consciously about what the board needs to look like at each stage, and be willing to evolve it.
One final point
Asking a board member to leave can be difficult, so be thoughtful about who you give a board seat to, what the terms are, and what the exit mechanism looks like if the relationship doesn’t work out. A board seat should come with clear expectations, and ideally a defined tenure or review mechanism.
Originally posted on LinkedIn.