Startups love to talk about product, growth and funding. Fewer talk about who is in the boardroom, and that is a big mistake.
Dr Shefaly Yogendra, FTSE 250 non executive director and author of Uncharted Spaces, believes boards need a rethink. In her book, she writes that “a new era demands a new approach.” She looks at “why we need different governance structures, different conversations, and very different people around the table.” For early stage founders, that question is urgent. If your board looks and thinks like you, you are limiting your own company.
Her research is based on hundreds of interviews with board members around the world. The message is consistent. Boards need to be “braver and more imaginative, think laterally, and show strategic stamina.” That does not happen when everyone shares the same background, age, and worldview.
Startups often build boards through personal networks. A former boss. An early investor. A friend from university. It feels efficient. It also limits perspective. If you want a company that lasts, your board needs people who see risks and opportunities you do not.
Shefaly asks a direct question in her work: “The Board of 2030 – Does Your Board Have a Gen Z, a Tech Nerd and a Diplomat?” It is a reminder that lived experience and skill sets influence decisions. A twenty something digital native will view AI and data differently from a career banker. A diplomat will read geopolitical tension differently from a product engineer.
Does Diversity At The Top Change Decisions?
Look at the numbers.
A new report from inclusion consultancy INvolve found that just 6% of FTSE 100 Chairs identify as ethnically diverse. In the US, 13% of S&P 100 Chairs come from non-white backgrounds. Compare that to the population. In the UK, 18% of people identify as non white. In the US, 42% do.
That gap has consequences, because as Suki Sandhu OBE, Founder and CEO of INvolve, says: “Chairs are among the most influential figures in any business. The lack of diversity in these roles means many of the decisions affecting company culture, hiring, and strategy are being made by individuals who do not reflect their employees or customers.”
If that is true for FTSE 100 giants, it is even more relevant for startups trying to win new markets. Your customers are not one type of person. Your board should not be either.
Sandhu adds: “We’re at a turning point. If DE&I is to survive current political and social pressures, we need leaders who understand its value. That means putting more diverse individuals in the top seats – not just talking about it.” Founders often talk about values in pitch decks. The board is where those values are protected or ignored.
Boards set long term strategy. They support or sideline DE&I initiatives. They set the tone. If every director has walked the same road, debate gets shallow. Groupthink creeps in. “Safe” decisions start to look attractive.
What Does A Future Proof Startup Board Look Like?
Shefaly Yogendra does not romanticise board life. She writes that positions are often portrayed as “cushy retirement gigs where everyone agrees and goes back to the golf course.” Her experience presents “a very different portrait.” She shares “candid stories – the good, the bad, the ugly and the tricky – of how boards currently function, what works and what doesn’t, and what good board leadership looks like.”
This is practical insight for startups. A board is there to question, challenge and steady the company when markets get rough. That means you need people with fluency in AI, cybersecurity and data ethics. It means understanding climate risk and geopolitical tension. It means governance that creates resilience and value over time.
According to research cited in Uncharted Spaces, 80% of non executive directors believe current board structures and practices are inadequate to oversee AI and not future proofed. If seasoned directors think that, imagine the risk for a young tech company with no one on the board who truly understands the tech.
Diversity is also about making sure your board can see around corners. Different ages, ethnic backgrounds, sectors, and lived experiences make that happen. They make it harder to ignore blind spots. All grounds are covered.
If you are building a startup, treat your board as seriously as your product. Do not fill seats out of convenience. Build a group that challenges you, understands the world your customers live in, and can guide you through uncertainty. If your board looks exactly like you and your co-founder, that is is risk, not loyalty.
