The debate on start-up boards is heating up across the FrenchTech ecosystem — music to our ears.
Recent posts by leading early-stage investors like Jean de La Rochebrochard, Pierre-Eric Leibovici, and Fred Destin highlight the risks of dysfunctional boards and the need for best practices early on. Nearly a decade ago, Erevena initiated a Non-Executive study for investor-backed businesses. The latest edition, including diversity dimensions, was conducted with 25 venture funds.
Two years ago, we published a study on French start-up boards due to:
a) lack of data
b) Our experience with boards across Europe and the US revealed significant governance gaps in France compared to Europe & the US
One of our key findings? Only 29% of start-ups had independent board members (2023) – and little diversity 👇. Our next edition of the study will be out in Q2. We’re hoping to see a stronger governance trend/ adoption —but we’ll let the data speak for itself.
Stronger boards = stronger businesses.
Board dynamics
Independent board members with operational backgrounds provide unbiased strategic guidance and balanced decision-making. As Jean de La Rochebrochard (Kima Ventures) noted, chaotic boards can break start-ups, while strong governance acts as an “invisible hand” on the path to success. Consider this: independent members and a Chairperson.
Diversity (in its broadest sense) matters.
Boards need to bring diverse perspectives, blending expertise from various sectors and geographies. As Pierre-Eric Leibovici noted, “a board must bring together diverse skill sets, drawing from various sectors and geographies [..] offering complementary expertise”.
Timing is critical.
In an uncertain market, strategic foresight is critical—especially for ambitious, global-minded founders. Ideally this should happen systematically from term sheet signing. Evolution is important: whilst agility is your strongest ally at pre-Series A stage, a board needs to evolve as the company grows and faces different challenges.
Governance as a competitive and strategic advantage.
What we have noticed: Anglo-Saxon investors are paying attention and increasingly scrutinize board structures in France. Founders who proactively build effective boards early signal ambition and humility—two qualities that attract world-class investors and generate better exits.
Let’s shift gear
With our next edition, we’re keen to see whether VCs have adopted a more systematic approach to assessing their board and appointing independent board members. Initiatives in the ecosystem such as Board Project —led by Louise-Marie Véron, Solenne Niedercorn-Desouches, Michael Chekroun, Benjamin Blasco, and Adrien Chaltiel—will promote and help to professionalise governance practices across the FrenchTech ecosystem. We spoke to Louise-Marie and she shared, “The French Tech ecosystem is exceptional but still young when it comes to governance. Compared to other countries, we have too few independent board members and boards that lack diversity. For us, founders of Board Project, this is an untapped potential for performance”.
What are you seeing? We are interested in hearing best practices and first-hand experiences, please get in touch with Anne or Lilian.
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