As a founder, you know your product intimately, but navigating the broader startup landscape requires different expertise. Unless you’re a serial entrepreneur, assembling a startup advisory board can provide valuable guidance during your venture’s critical growth phases.
Learn how advisory boards for startups can help businesses access strategic expertise and accelerate their growth.
A startup advisory board is a carefully selected group of industry experts—typically three to seven members—who provide strategic guidance to a startup’s founders and management, helping the startup grow faster and improve leaders’ decision-making.
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“Advisory board members typically provide you with strategic advice, offer industry insights and create valuable networking opportunities,” said Erin Lashbrook, a vice president for J.P. Morgan Startup Banking. “They can also strengthen your team’s problem-solving capabilities, provide feedback on your business plans and ultimately help you achieve your strategic goals.”
Startups may consider forming advisory boards early in their development, particularly before major milestones such entering new markets or navigating the regulatory landscape.
Take, for example, a U.S. software provider planning its European market expansion. Its advisory board might provide guidance on:
In highly regulated industries such as life sciences, advisory boards provide crucial expertise that could mean the difference between successful market entry and costly regulatory setbacks. A medical-device startup, for example, can leverage advisory board expertise to:
While advisory boards and boards of directors may sound similar, they are different in several ways:
“When forming your advisory board, you should first define its specific purpose and expected benefits, then carefully select members whose expertise aligns with those goals, and then establish clear expectations for engagement from the outset,” Lashbrook said.
Effective advisory boards typically share several key characteristics: members with directly relevant expertise, clearly documented roles and commitments, open communication channels and strong alignment with the startup's vision and goals.
The most successful advisory boards evolve alongside the company. Regularly assess your board’s composition and impact, making strategic adjustments as your business needs change to ensure continued value from these relationships.
Our Innovation Economy team connects founders with industry experts and provides strategic guidance for building effective advisory boards tailored to your growth stage. Connect with J.P. Morgan Startup Banking today to continue the conversation.
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/commercial-banking/legal-disclaimer for disclosures and disclaimers related to this content.