Reflections on Governance, Market Fit, and Board Practices

A couple of weeks ago, at the SIFTED conference, a recurring theme that stood out was the importance of governance for startups – especially once they’ve achieved product-market fit.

Governance and Product-Market Fit

A major takeaway was the general consensus among investors that companies should focus on getting their governance in order soon after reaching market fit.

This is crucial for scaling successfully.

Once a startup has found its product-market fit, the next stage is growth, and to sustain growth the right governance structure is essential. Proper governance is a framework for decision-making and reassures investors that the company is going in the right direction.

Board Meetings

There are no hard-and-fast rules but general best practice for growth-stage companies is at least 8 per year, with no more than six weeks in between. For a fast-growing startup, don’t have too few.

Where runway or other urgent issues arise, daily meetings might be necessary.

Operational vs. Strategic Focus

Board meetings should not be too operational. Operational matters can be delegated to the executive team.

The board’s role is to provide oversight, strategic direction, wider issue / wider stakeholder inclusion and the company’s long-term goals.

The Role of a Chair

For most companies, the need for a formal chairperson arises around Series B or beyond.

A good chair is pivotal in keeping meetings on track and focus on the strategic issues at hand.

Committees

Similarly, committees such as audit or remuneration typically come into play at Series B or later.

Exits: IPOs vs. M&A

An engaging session focused on exit strategies, with a specific emphasis on IPOs and mergers and acquisitions (M&A). IPOs account for 30% of company exits, but contribute around 70% of the value created at exit. M&A remains the most common exit route, around 70% of exits.

Final Thoughts

The conference really highlighted how founder-led companies need to progress into more structured, governance-focus post-product market fit.

SEEIO is exactly that governance scaffold – which helps you scale – without stifling innovation.

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