The board effect: why is a good strategic committee a game-changer for a startup?

In the world of startup investing, the spotlight is often on fundraising, growth metrics and innovative business models. However, one element that is often relegated to the background can profoundly influence the trajectory of a young company: governance. And at the heart of this governance, the strategic committee (or board) plays a pivotal role. For business angels, it is a lever for strategic impact as well as a long-term commitment. Being a good board member is not just about following a startup, it is about contributing to its structural success.

1. Governance: a strategic lever that is often underestimated

Too often, founders see the strategic committee as a legal formality or a reporting space imposed by investors. However, a well-constituted and well-animated board can become a real engine of growth. It embodies a space for taking a step back, confronting ideas and strategic alignment. It is also the place where a form of contract of trust is played out between investors and the management team.

In startups in the seed phase, this governance is often informal. But as the company grows, the stakes intensify and the number of stakeholders multiply, a structured board becomes essential. It is not a control body, but a space for strategic collaboration. The board must help the founders make the right decisions, at the right time, with the right people.

2. What a well-constituted board should bring

A high-performance strategic committee must above all allow for strategic perspective. It is there that the main orientations are validated, that pivots are debated, that internal tensions are defused. It also guarantees a form of accountability: accountability, not as an obligation, but as a method of structuring execution and moving projects forward.

A good board is also a lever for networking. It should allow founders to meet industry experts, potential customers, key recruits or future investors. As such, business angels, often from the business world, have a valuable network that they can mobilise in a targeted manner.

Finally, an effective board is a space of support. In difficult times, it can be a safeguard, a sounding board, sometimes even an emotional shock absorber. He brings method, rhythm, and, above all, an outside perspective, unbiased by the day-to-day operations.

3. The role of BAs on the board: benevolent partner, not hidden executive

For a business angel, being a member of the strategic committee does not mean "taking over" the company. On the contrary, it is a question of positioning oneself as a strategic partner, both benevolent and demanding. The temptation can be great, especially when you have entrepreneurial or managerial experience, to want to "do for the place of". But the role of the BA is not to execute, or even to micro-manage. It's to help founders increase their skills, take a step back and structure their decisions.

Being a good board member means knowing how to ask the right questions, bring out points of vigilance, and alert without alarming. It also means knowing how to be silent at the right time, and respecting the sovereignty of leaders. It is, in short, combining influence and humility.

4. How can dysfunctional governance be identified?

Several signals can alert a business angel to the quality of a startup's governance. The absence of a formalized board, even after several rounds of financing, is a first indicator. Similarly, a board dominated by a single voice, without diversity of profiles or adversarial debate, can be a problem.

Other signs of dysfunction are more subtle: meetings where the founders report without opening a strategic discussion, a lack of follow-up on the decisions taken, or unresolved tensions between co-founders. Sometimes, it is the lack of anticipation (poorly prepared recruitments, unclear commercial strategy, dependence on a single client) that reveals a board that is too passive or poorly supported.

In these cases, the role of investors, especially BAs, is to initiate a conversation about governance. Not to impose a model, but to raise awareness. Good governance cannot be decreed, it is built, step by step, in trust and clarity.

5. Why structuring your board early is a strategic advantage

Successful startups are often those that have clear governance in place from the earliest stages of their development. This does not mean that you need a board of 10 people from the first round. But structuring governance means above all establishing a rhythm of steering, shared decision-making spaces and well-defined roles.

Young founders are sometimes afraid that the board will restrict their freedom. It's the opposite: a benevolent but demanding board allows you to raise the level of play, to better manage pressure and to make better decisions, more serenely. It is also an excellent preparation for the future: raising from institutional funds, recruiting senior profiles, structuring a team, preparing a Series A... All of these milestones require strong governance.

By structuring their board early, startups can help themselves avoid many costly mistakes. They strengthen their credibility, clarify their vision and improve their ability to execute. These are all elements that business angels must actively encourage and support.

Being a BA also means being a good board member

Investing in a startup is not only about believing in a product or a market, it is also about betting on a team and helping it to structure itself. The board is a key tool in this structuring. For business angels, it is an opportunity to have a concrete, lasting and often decisive impact.

A good strategic committee is not a control body. It is an accelerator of decisions, a catalyst for talent, a strategic mirror. Startups that take governance seriously avoid many pitfalls. And business angels who are actively involved in it considerably increase the value of their investment.

Because in the end, what is expected of a good investor is not just a cheque: it is an ability to support, challenge and structure. And sometimes, to help founders see further. This is where the role of the board takes on its full meaning.