Where knowledge and networking collide.
Every month, Best Best Talent Platform organizes virtual gatherings for our members to network and learn from each other. BBTP Member Meetings highlight our members' expertise, facilitate peer mentoring, and foster a sense of camaraderie among top-level professionals.
The BBTP Member Meeting in October featured a presentation by Petri Laine. Petri Laine shared essential insights for board professionals looking to maximize their effectiveness on VC-backed boards.
Expert knowledge from a seasoned investor
Petri Laine has been in the VC business for over 20 years. For the past 8 of those years, he has been a partner at Innovestor, one of Finland's leading early-stage VC investors that manages six funds with over €250M in assets. Prior to working in VCs, Petri worked in corporate finance and academia. He has a degree in accounting from Finland and a degree in finance from the UK.
Over his career, Petri has served as a board observer, board member, and chair for numerous venture-backed companies. Petri’s extensive experience made him the perfect voice for how to approach board roles with a venture capital perspective. Below are seven take-aways from his presentation.
How to build a good board — a VC perspective
1. Craft a balanced, strategic board
Boards should be thoughtfully composed of 3-7 members. For agile leadership, Petri typically leans towards smaller boards with the option of having observers or bringing specialists in to help when specific tasks come up. Petri also stressed having a chairperson who is not the CEO. An independent chairperson plays a pivotal role in guiding effective decision-making and maintaining impartiality— an essential quality for venture-backed companies where swift and bold decisions are often required.
2. Set a proactive, growth-focused agenda
In VC-backed companies, the board’s role extends far beyond traditional oversight; it’s a hands-on, strategy-driven role, where the board actively participates in shaping the company’s path to growth. Petri advised a cadence of six to eight board meetings per year, with one longer “strategy day” for in-depth planning. Additional meetings may be called in periods of rapid change, such as financial distress or exit preparation. This regular rhythm keeps boards aligned with management and ensures focus on key milestones.
3. Ensure shareholder alignment
Petri highlighted that having a VC as a shareholder inherently means there’s an expectation for a future sale or IPO. To maintain clear alignment around this goal, he recommended that boards hold an annual shareholder alignment meeting, particularly in companies with large or diverse shareholder groups. By ensuring equal treatment of shareholders and setting unified expectations for growth and exit strategies, this meeting helps keep everyone focused on the company’s ultimate trajectory.
4. Strengthen connections with management
Successful VC-backed boards have strong, transparent relationships with company management. Petri recommended that board members regularly connect with the CEO and CFO, the two leaders most closely aligned with company operations. This means having contact regular check-ins in-between the board meetings. He also suggested bringing in department heads, such as those overseeing marketing or product development, to specific board sessions. This practice provides board members a fuller picture of company progress and avoids board members going over the CEO's head. Outside of these periodic updates, Petri recommended to notify the CEO if you will speaking to a department head (other than the CFO). This heads-up shows respect and builds trust with the CEO.
5. Implement Streamlined Governance Practices
Efficient governance structures are crucial to high-performing boards. Petri recommended concise, well-organized meeting minutes with action items to keep decisions clear and accountable. Regular check-ins with auditors, ideally twice a year, help reinforce financial transparency—a priority for VC-backed firms. He also advised ending each board meeting with a “directors-only” session, allowing board members to discuss and align on company direction without management present. This brief session promotes candid conversations and can help resolve issues before they impact overall strategy. In these sessions, board members can also assess whether or not they have the right CEO for the job— a question that should always be in the back of the board's mind.
6. Use Specialized Committees and Interim Experts
Petri encouraged VC-backed boards to form specialized committees, such as audit, compensation, and exit committees, to ensure focused attention on critical areas. These committees can efficiently address pressing needs, allowing the full board to stay strategic and forward-looking. Petri also recommended engaging interim experts for specific challenges, such as scaling or logistics, which might require unique skills in the short term. This practice not only fills expertise gaps but also showcases the board’s agility.
7. Conduct regular self-assessments
Annual self-assessments are crucial for ensuring board effectiveness and optimizing each member’s contributions. Petri explained that this practice helps boards reflect on their impact and identify areas for improvement, ensuring the board continues to deliver value. Regular self-assessments also allow board members to confirm their alignment with company goals.
Thank you, Petri!
We thank Petri Laine for sharing his actionable insights with the BBTP Community. His guidance on what venture capitalists look for in boards is valuable for any board professional seeking to make a strong impact and support long-term company success.
If you have any questions for Petri, we encourage you to reach out to him directly:
Petri Laine
+358 400 909 447
petri.laine@innovestor.fi
If you are seeking competent board members to reach your company's strategic goals, we recommend our partner, Ferovalo.
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Have something to share with the BBTP community?
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