Unikorrn’s Post

Corporate Governance in Startups: Setting the Right Foundation. While established companies may face challenges in adapting to corporate governance principles, startups have the advantage of embedding these principles from their inception. Here are key strategies for startups to ensure compliance with global best practices of corporate governance: •Board appointment and selection: Startups must carefully consider the expertise and composition of their board members. This includes balancing the roles of Executive Directors, Non-Executive Directors, and Independent Directors to ensure diverse perspectives and effective oversight. •Ethical framework: Startups should establish comprehensive policies aligned with Environmental, Social, and Governance (ESG) principles. This includes provisions addressing conflicts of interest, insider trading, and ethical conduct to foster a culture of integrity and accountability. •Written constitution: the bylaws of the company should articulate the company's objectives and operational framework providing clarity and transparency to shareholders and other stakeholders. • Audit: Startups must appoint external auditors to ensure that the Company’s financials are accurate and unbiased. By implementing some of these foundational elements of corporate governance, startups can establish a solid framework for growth, innovation, and long-term sustainability. #Sustainability #Corporate Governance #Startups

Many startup founders see corporate governance as a hurdle, but what if I told you that is the main problem? In my 20+ years in the startup trenches, I've seen countless founders trip up on one crucial element: corporate governance. You might think it's just for stuffy corporations, but guess what? Strong governance can actually propel your startup forward. Here's how... In the early stages of a startup, before raising significant capital (pre-Series A), corporate governance and related processes may not seem crucial. The founders concentrate on decision-making, and agility is crucial. However, once you've secured Series A funding and invited outside investors, the game changes. At this point, implementing robust corporate governance systems becomes a must. Because it's the only way to ensure sustainability, continuity, and growth. When you've taken money from external parties, you can no longer operate as a one-person show. You need: 🚩 Reliability: Investors want assurance that their capital is being managed responsibly and that the company is built to last. 🚩 Group decision-making: As the stakes get higher, you can't afford to make critical decisions alone. You need a team of experts to provide counsel and course-correct when needed. 🚩 Scalability: Corporate governance lays the foundation for your startup to scale and grow into a mature, well-oiled machine. The harsh reality is that if you don't get key decisions right, your business could falter. Corporate governance brings in the checks, balances, and collective wisdom to mitigate risks and capitalize on opportunities. In the long run, corporate governance is an enabler—the critical framework that allows a startup to spread its wings, attract top talent, and soar to new heights. So, don't view it as a roadblock. Embrace corporate governance as a powerful tool that safeguards your vision and unlocks your startup's true potential. Do you think corporate governance is a blocker or enabler? #startup #founders

As the foundation upon which organisational #integrity is built, effective #governance practices serve as guiding principles to steer #startups towards sustainable growth & success. More in #KPMG’s latest publication 'Foundations of governance' https://social.kpmg/c7xpo6 | #corporategovernance

Clarity is kindness- and it's necessary for good business. Whether you're a startup, a growing energy sector company or a not-for-profit, a governance review provides great ROI! Find out more in this new article from the GrowthPoints blog. #changeleadership #governancematters #businessacumen #clarity https://lnkd.in/gBVDhxug

There have been governance issues in startups, and yet large private investors have acted as if nothing (wrong) happened. I write in Board Stewardship Inc. magazine how investors cannot shun accountability for governance. https://lnkd.in/dkffvErh #Startups #privateinvesting #PEs #VCs #MoralCompass #governance #innovation

In the fast-paced world of startups and SMEs, it can be easy to push the notion of corporate governance to the sidelines, deeming it a concern primarily for larger corporations. This, however, is a misconception that could potentially stunt your growth and undermine the value you've worked so hard to build. Here's why. Importance of Governance Good governance is not just about compliance; it's an asset that adds significant value to your venture. Governance fosters an environment of credibility and trust, vital traits that make you more attractive to investors, shareholders, and other stakeholders. Complexity and Scaling As your business scales, so does the complexity of your stakeholder ecosystem. It becomes essential to have a robust governance structure in place to maintain consistency in decision-making and to be transparent in the disclosure of relevant information. A well-governed entity is generally associated with higher valuation and an enhanced ability to attract further investment. Stakeholders Beyond Shareholders It's crucial to understand that stakeholders extend beyond just shareholders. They include your employees, suppliers, and clients, among others. Your governance structure sets the tone for how these varied parties are treated, which in turn influences their loyalty to your brand and the long-term success of your enterprise. The Value of External Audits The exercise of regular external audits and evaluations can often be viewed as a cumbersome task, meant solely to meet compliance norms. On the contrary, such evaluations provide an invaluable impartial perspective on the efficacy of your operations, management, and strategy, thereby serving as an operational check and guide for internal revisions. Adaptive Governance Corporate governance isn't a 'set it and forget it' aspect of your business; it is dynamic. The corporate landscape is rife with challenges—regulatory, technological, and market-driven. Your governance structure should be flexible and adaptable enough to evolve and meet these challenges head-on. By focusing on governance as a strategic tool, you are not just ticking a regulatory box but substantially augmenting the potential for sustainable growth and resilience in your business. --- #Mirage #Governance #GoodGovernance #CorporateGovernance #SMEs #Startups #Stakeholders #SustainableGrowth #Transparency

#Corporategovernance, often regarded as the #compass guiding #organisational behaviour, holds immense significance for #startups. Against a constantly evolving backdrop, where #innovation and rapid growth are the lifeblood of emerging #companies, robust #governance practices become more than mere #compliance requirements – they become #strategic imperatives.

As the foundation upon which organisational #integrity is built, effective #governance practices serve as guiding principles to steer #startups towards sustainable growth & success. More in #KPMGIndiaBLC's publication 'Foundations of governance' https://social.kpmg/c7xpo6

Being an early-stage #investor comes with the crucial responsibility of nurturing the growth and success of #startups. One key aspect of this responsibility is to ensure the establishment of good #governance practices right from the outset. This involves implementing various measures and protocols to maintain a balanced and #sustainable pathway for the startup. 1. Board Meetings: Conducting regular board meetings is essential for decision-making, strategy #development, and overall oversight. 2. Board Agenda: Having a well-defined #agenda for board meetings ensures that discussions remain focused on critical matters. 3. Certificate of Compliance: A certificate of #compliance signifies that the startup is operating within the framework of applicable #laws and #regulations, which is crucial for long-term #sustainability and reputation. By emphasizing these elements, early-stage investors contribute significantly to the establishment of a solid foundation for #startups.

Unlocking Strategic Planning with Corporate Governance ! In the dynamic world of startups, having a robust corporate governance framework is more than just a necessity—it's a game-changer. 🌐 Corporate governance lays the foundation for effective strategic planning, steering your startup towards sustainable growth and long-term success. 📈 Clarity in Vision: With a well-defined governance structure, startups can establish clear goals and objectives, ensuring everyone is aligned with the company's vision. 🏆🔍 Risk Management: Good governance identifies potential risks early, allowing startups to develop proactive strategies to mitigate them. 🚀🛡️ Decision-Making Efficiency: A structured approach streamlines decision-making processes, empowering leaders to make informed and timely choices. ⏱️📊 Stakeholder Confidence: Transparent governance practices build trust among investors, customers, and employees, fostering a positive reputation and attracting more opportunities. 🤝🔑 Resource Optimization: Efficient governance helps in the optimal allocation of resources, maximizing productivity and minimizing waste. 💰📉 Embrace corporate governance to propel your startup into a future of strategic growth and unparalleled success. 🌟🔗 #StartupSuccess #CorporateGovernance #StrategicPlanning #BusinessGrowth #StartupJourney #GovernanceMatters #Innovation #Leadership #RiskManagement #StakeholderTrust #Efficiency #Entrepreneurship #StartupStrategy #abhisheksengupta     Media Credit : Pic Courtesy - UnSplash Video Courtesy - Mixxit Background Music - Upbeat Background Music. Pic & videos : invideo.io & Istock   Disclaimer : 1. This episode is made for information and knowledge. All necessary checks with relevant persons and authorities should be done before taking any actions based on this. Maker of the episode/ company / its employees / its partners / founders/ co-founders / participant will not be responsible for any incident related to this.   2. Images & videos used in this are for representation and educational purpose under fair use provision of copyright. These are not used for any other objective. Copyright Disclaimer under Section 107 of the copyright act 1976, allowance is made for fair use for purposes such as criticism, comment, news reporting, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favour of fair use.