Dear hustlers, founders, operators and visionaries,

Board meetings can feel like a formality—long presentations, endless reporting, and a room full of investors waiting for answers. 44% of startups rate their investors a 1 out of 5 in helpfulness. But what if your board could be one of your biggest strategic assets?

Our guest this week, Nicole Herzog, has been on both sides of the table—as a founder, investor, as well as board chair overseeing a successful change in ownership at Sherpany. In our conversation she breaks down how founders can run high-impact board meetings, engage board members beyond the quarterly sit-down, and set their company up for a successful transition—without losing control of the process. Exclusively for our newsletter subscribers, Nicole has shared additional insights below.

🎧 Tune in now on Spotify, Apple, or wherever you listen to podcasts. In the meantime: Follow the Gradient and stay tuned!

🫶🏼 Melanie & Christian

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How to create a successful startup board

What you will get out of this episode

In our conversation, Nicole shares:

• how to run board meetings that drive real strategic value

• the biggest mistakes founders make when managing their boards

• how to engage board members beyond the quarterly meetings

• the right way to structure board compensation and incentives

• and much more!

Our main take away’s

1. Board engagement is crucial – Founders should actively involve their board beyond formal meetings, sharing updates on highlights, challenges, and strategic decisions to foster alignment.

2. Effective board meetings require preparation – Send materials well in advance, collect questions beforehand, and focus discussions on strategic initiatives rather than lengthy reporting.

3. Compensation matters for independent Board members – While cash may not always be feasible, offering stock options ensures commitment and alignment with the company’s success.

4. The exit is a change in ownership, not an end – An exit should be seen as a transition for the company’s next growth phase rather than a departure, requiring careful planning and execution.

Additional material on the topic

• The 101 guide to board meetings for early stage CEOs

• Preparing a board deck 

How to reach out to Nicole

• LinkedIn

Exclusive from Nicole

If you could give just one piece of advice to a first-time founder about establishing and working with a board, what would it be?

Choose a board that enables you. Impact matters more than names.

When you have board members with different investment timelines, how can a founder bring the board into alignment?

Founders have interests as well, and they change over time. Complete alignment is rare. Awareness and transparency are key to handling different interests. The company’s needs should always come first.

What should a founder do in the first 90 days after bringing in an independent chairperson?

A chairperson without prior experience on the company's board is not advisable. As a chairperson, you need to understand the industry, the company, the founders, and the investors. However, if that’s the case, the priority should be trust-building and strategic alignment.

How can a board influence company culture?

The chairperson can have a significant impact on company culture. Their collaboration with the CEO and founders sets the tone for leadership dynamics, influencing how the entire team operates.

Are there any books that had a lasting impact on you?

• Clear Thinking: Clear Thinking: Turning Ordinary Moments into Extraordinary Results by Shane Parrish

• The 7 Habits of Highly Effective People by Stephen R. Covey