
Governance is an elephant. Inside the room. More often, though, it’s still outside, waiting to be let in. You’d better open the door soon. We need to bring governance inside—into our attention and our conversations.
What a tedious topic... Right. It may not be exciting, but it will keep your startup exciting in the eyes of your investors.
Startups need governance.

Imagine governance as a tidy, well-organized pantry. If you don't keep it tidy and organized, its contents will start falling on your head next time you step inside and look for something. Or you won’t find that jar of zaatar at all. What are you going to tell the labneh? You better avoid such emergencies.
No matter how small your firm is, there’s no way you won’t benefit from having good governance. Think of better decision-making, good brand name and reputation, more high-quality talent, funding opportunities and lower risks for investors.
Don't wait for a Pre-Series A, start today. Because when a bigger round comes and your paperwork is not in shape, an agreement missing here, a signature missing there, your investors may back off from the deal... It’s too late to lament that messy pantry at that point.

You may think that right now your resources are scarce and your team doesn’t have the time and experience to implement good governance practices. But putting systems and controls in place while the structure is small is definitely a better approach than doing so at later, when the structure and team have grown.
As per Luc Sterckx (INSEAD alumnus), governance plays a role in creating balance within a startup:
Governance doesn’t kill creativity. It won’t kill your mission. On the contrary.
So where should you begin?
You have most probably already begun. See the list below.
I believe there are at least 10 things that founders need to always keep in check:
And, lastly, who plays a role in startup governance? Everyone who’s incentivized to growth the startup value and securing a great exit. As investors, we should ensure that every startup in our portfolio is as balanced on the inside as possible. If we fail to assist founders and their teams in achieving that balance, it can cost us all dearly one day.
Good literature to get you started:
P.S. I got inspired to talk about governance thanks to “Governance for every phase” panel at last month’s Step Dubai.
See you in April and Eid Mubarak in advance,
Hasan
It’s up to each of us to ensure that every startup we’re involved with is as balanced internally as possible. Transparent leadership, backed by a committed team that understands their tasks. Legal matters free of red flags. Risks under control. Ethical decision-making. Solid accounting policies. A well-maintained budget. Updated data rooms. Tidy cap tables. Detailed reporting that lands in your inbox at least quarterly, if not monthly. Strong boards. Start today.