What Kind of Board Does Your Startup Actually Need?

A practical guide to building the right board structure at each stage — from zero to IPO

Every founder eventually hits the same question: Should we form a board now? If so, what kind? And what should they actually do?

There’s no single answer. The right structure depends on your stage — and it changes over time. But one thing is clear: founders who treat their board as a strategic asset, not a formality, create better outcomes.

Below is a guide to what kind of board — or advisory group — makes sense at each stage, what role it plays, and how to evolve it over time.

Founding Stage

Recommended: Structured Advisory Board (Yes, even at this stage)

At the idea or formation stage, many startups lean on informal advice. That’s helpful, but often not enough. Even before you raise funding, setting up a light, structured advisory board (e.g. 2–4 trusted operators, founders, or specialists) can deliver disproportionate value:

• Adds outside accountability to early-stage decisions
• Helps founders sharpen their go-to-market approach, not just the product
• Brings early credibility when speaking with potential investors or hires
• Creates a rhythm of reflection and perspective beyond the day-to-day
• Starts to separate governance from management — a habit that pays off later

Key mindset: You’re not building a board because you have to. You’re building one because it helps you think better, move faster, and avoid avoidable mistakes.

Seed Stage

Recommended: Advisory Board or Board of Directors

You’ve raised capital, have an early team, and your product is starting to take shape in the market. This is a pivotal point where many startups formalize governance for the first time.

Some choose to continue with a structured advisory board, while others — especially those with institutional investors — set up a formal board of directors.

Either structure can work well, depending on the company’s complexity and investor requirements. What matters most is that the group:

• Brings relevant experience to support the CEO