VC-Backed Board Academy Prepares Startup Directors to Drive Growth and Innovation

With recent boardroom coups shaking the AI industry and criminal prosecutions of high-profile startup founders, new attention has focused on the need for competent leadership and strong board oversight at startups.

To help address this need, the UC Center for Business Law SF (CBL) hosted its second biannual Venture-Backed Board Academy (VCBA) at Nasdaq’s MarketSite in New York City’s Times Square on Oct. 29. The event was sponsored by Cooley LLP, Nasdaq, and Woodruff Sawyer.

The intensive, day-long program drew dozens of startup founders, executives, and investors looking to sharpen their boardroom expertise. Following a successful launch at Cooley’s San Francisco office in March, the New York session attracted participants eager for the latest insights in corporate governance.

“A good board doesn’t necessarily make a company, but a bad one can actively destroy it,” said CBL Executive Director Evan Epstein. “As startups face immense risks and opportunities, the VCBA arms directors with cutting-edge tools and insights to steer their companies through turbulent waters, avoid pitfalls, and unlock long-term success.”

Comprehensive Training for High-Stakes Decisions

Seven expert-led panels kept attendees engaged with discussions on fiduciary responsibilities, executive compensation, liquidity, board composition, and more. The day also featured a keynote fireside chat with Matt Blumberg, CEO of Bolster and co-author of “Startup Boards,” who shared insights on the evolving role of boards as private companies grow.

“This event should be a required course for all directors,” said VCBA attendee Laurence Hayward, founding partner at Atoms VC. “I see too many situations where directors don’t fully appreciate their fiduciary requirements. It can be more complex than it at first appears.”

A Unique Program for Startup Directors

Startup directors play a crucial role in the innovation economy. They guide new companies strategically, help them attract investors, manage risks, and oversee important business decisions, all while supporting the long-term growth and success of startups.

While many programs exist to educate directors of public companies, VCBA is the only program of its kind for directors of VC-backed private companies. Startup boards often face unique challenges, such as conflicts between investors, founders, and employees, especially during down rounds, recapitalizations, and company sales. Exit strategies, such as initial public offerings or mergers and acquisitions, are further complicated by new trends, including ramped up antitrust scrutiny from regulators. The VCBA provides expert guidance on navigating these complex issues.

“VC-backed companies thrive with informed and effective board leadership,” said Cooley CEO and UC Law SF alumna Rachel Proffitt. “Board members must be equipped to navigate complex challenges, and we are excited to join UC Law San Francisco and Nasdaq in supporting the next generation of leaders in this evolving ecosystem.”

Shaping the Future of the Innovation Economy

VC-backed startups are a major driver of value in the economy. Venture capitalists poured over $170 billion into startups last year, and venture-backed companies make up about 75% of today’s U.S. stock market value. Yet, with a 90% startup failure rate, the fate of emerging companies in this hypercompetitive landscape is fickle.

In this uncertain environment, strong corporate governance becomes crucial to navigating challenges and securing the financial backing needed for sustained growth.

“Corporate governance is important in capital markets because it helps companies access capital, which supports innovation and economic growth,” said Jeff Thomas, Executive Vice President, Chief Revenue Officer and Global Head of Listings for Nasdaq’s Capital Access Platforms. “We are proud to host the next VCBA session at MarketSite and continue the conversations around corporate governance best practices for venture backed companies.”

Avoiding Pitfalls and Mitigating Risk

As startups grapple with lingering effects from the pandemic, a swelling AI bubble, and growing legal risks, the need for strong board leadership has never been greater. VCBA explores the latest trends and issues that shape the startup landscape, empowering directors to make shrewd decisions that promote growth and innovation.

Liquidity trends, cross-over investors, and optimal board structuring at different stages of growth are among the topics VCBA breaks down for participants. The program also provides valuable networking opportunities for startup directors, including investors, founders, C-level management, and independent board members.

“By offering access to leading academics, practitioners, and startup board veterans, we hope to give participants the resources they need to be responsible stewards of the innovation economy,” said CBL Faculty Director Abraham Cable.

Learning from Industry Experts

In a session on fiduciary duties and conflicts of interest, Anthony Johnson, CEO of biotech firm Kodikaz, shared his experience as a founder and director navigating real-world tensions between investors, founders and employees. Johnson said he gained valuable insights from various panels into the complexities of setting up and managing high-performing strategic boards.

“The sessions offered a great mix of legal, regulatory, and real-world perspectives,” Johnson said. “I highly recommend it for those who are new to private venture-backed boards.”

Addressing the Diversity Gap in Startup Leadership

Diversity on boards remains a challenge for venture-backed companies. While public companies have made strides toward greater diversity, VC-backed startups continue to lag behind. The VCBA aims to close this gap by making knowledge of best practices for startup directors more accessible. The VCBA partners with multiple organizations that share this goal, including the Latino Corporate Directors Association; Silicon Valley Directors’ Exchange; National Association of Corporate Directors; Black Venture Capital Consortium; Extraordinary Women On Boards; Bolster; and Him for Her.

What’s Next for VCBA?

The Oct. 29 event in New York City marked a significant milestone for the VCBA, completing its first year of successful programming. The strong turnout and enthusiastic feedback reinforced the demand for high-quality, targeted training for startup board members.

“We’re thrilled to celebrate the successful completion of our second VC-Backed Board Academy (VCBA) program in New York City,” Epstein said. “We look forward to more opportunities to connect, learn, and build highly effective, strategic boards together.”

The next VCBA event is scheduled for Spring 2025 in San Francisco, where it will continue helping startup board members gain the skills to drive growth and innovation in a rapidly changing landscape.