When Diversity Becomes a Force Multiplier on Start-Up Boards

When Diversity Becomes a Force Multiplier on Start-Up Boards 

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When it comes to board diversity in tech - gender, age, education, nationality, experience, and even length of tenure have all been shown to improve corporate performance. 

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There’s no prescribed approach when it comes to board diversity, but it’s clear that the boards able to offer a wider range of perspectives and experience are those best-positioned for better decision-making. 

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The past decade has seen meaningful gender diversity progress towards more female representation on boards.

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• Data shows that women currently hold 45% of board roles at FTSE 100 companies (19% chair positions)
• 43% of board roles at FTSE 350 companies, and 31% of board roles at the 50 largest private companies in the UK
• Within Europe's largest public companies, approximately 39% of Board positions, and just over 11% of chair positions are held by women

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When it comes to board diversity in tech, start-ups across the UK and Europe tell a less than optimal story in terms of progression;

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• One-third of start-ups in the UK and Europe report having no gender diversity on their boards at all
• Among those that do, there is still next to no representation of non-binary people.
• The pay gap is wide for Chairs in the UK with 80% of male Chairs earning £80,000 or more, compared to 0% of female Chairs earning above £50,000
• In 2023, 10% of start-up board members reported being from ethnic backgrounds – the number in 2019 was also 10%
• In 2023, 23% of new appointees came from Black, Asian, Arab, or other non-white ethnic groups. In 2024, however, that number declined to 20%

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Why diversity matters on start-up boards

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Diversity isn’t a tick-box exercise. It’s a strategic advantage that directly impacts performance, innovation, and long-term growth for tech companies navigating today’s challenges.

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Start-ups with diverse boards benefit from:

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• A broader understanding of customers, markets, and cultural dynamics
• Creative collaboration and problem-solving
• Better decisions, informed by a wider range of experiences and perspectives
• A stronger foundation for sustainable growth and governance

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In other words, diverse boards aren’t a nice-to-have, they’re a force multiplier. 

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Diversity goes deeper than gender and ethnicity

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Improving gender and ethnicity balance on start-up boards is only part of the picture.

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True diversity also includes neurodiversity, disability, education, tenure, networks, and socioeconomic background — all of which contribute to a richer mix of thinking and decision-making styles.

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“You could have a very diverse board in terms of race and gender . . . but you might not get diversity of thought. Background and ways of approaching problem-solving might be similar.” - Danny Lopez MBE, CEO at Glasswall and Non-Executive Director

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Many founders and investors want to build effective boards, but unintentionally recruit from the same networks or backgrounds. They build on autopilot, ticking off the basics for ‘good governance’. This limits the representation on tech boards and narrows the range of ideas and diversity of thought brought to the table.

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“A mix of skillsets is valuable. For example, a financial skillset who can chair the audit committee and look at your financial statements and have strong relationships with financial advisors would be beneficial if you’re going out for a raise. Getting four individuals round the table each with their own black book of connections would be great, but variety means you can cover more advisory ground.” -Sarah Clark, International General Manager, Non-Executive Director, ex-PayPal and Virgin

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How to build a diverse start-up board

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So, while It’s clear that there is – broadly speaking – an understanding of how diversity adds value to boards, building more diverse boards doesn’t happen overnight and not all business leaders have access to more diverse networks. 

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For start-up founders, there’s a clear place to start: at the beginning. 

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When a founder is looking to assemble their first board or advisory panel – that’s the time to think about diversity. And for the founder appointing their first chair, it’s critical to look for someone who prioritises inclusion. 

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Here are a few pointers to get started with: 

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1. Broaden the search: Go beyond your immediate network. Look for operators, advisors, and NEDs from different industries, geographies, and backgrounds.
   
   
2. Revisit role design: Challenge assumptions about board experience, tenure, or investor relationships.
   
   
3. Don’t follow the generic governance tickbox strategy: Be intentional about how your potential board members think, approach and solve problems, and collaborate with others.
   
   

The global context

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Our Global Report Series explores these dynamics in greater depth — including board diversity in tech, representation on tech boards, and the evolving landscape of governance in high-growth companies.

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We’ve published three regional deep dives covering:

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• The United States
• The UK & Europe
• Asia-Pacific & Japan

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Each includes a Global Snapshot of the trends reshaping start-up and scale-up ecosystems around the world, including insights on why diversity matters on start-up boards and founders/CEOs can build their board for the future.

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Join the waitlist now. 

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