Innovation Unpacked: Building Your Advisory Board

Founders navigating the early stages of building a startup wear multiple hats. Whether its product strategy or fundraising, having trusted input can make all the difference. That’s where an advisory board can offer real value.

What an Advisory Board Is (and Isn’t)

An advisory board is an informal group of individuals who provide strategic insight, feedback and introductions based on their experience. Unlike a board of directors, which has legal and fiduciary responsibilities, an advisory board has no governance power. They are there to advise. Not to vote, manage risk or take legal accountability.

For early-stage startups, especially those in complex or regulated sectors, the right advisory input can fill key knowledge gaps, bolster credibility with funders or help open market doors. But it should be built with clear intent and structure.

When (and Why) to Build One

You don’t need to assemble a formal advisory board in your first few months. Often, it’s best introduced after a Minimum Viable Product (MVP) has been validated or ahead of a significant funding round, when you’re starting to shape your go-to-market, technology roadmap or regulatory strategy.

Common reasons founders form advisory boards include:

• Navigating technical challenges in R&D-heavy sectors
• Strengthening investor confidence with domain expertise
• Exploring new markets or partnerships
• Gaining specialist insight (e.g. IP strategy, NHS pathways, scale-up planning)

If you’re asking questions outside your founding team’s wheelhouse and you need more than a mentor but less than a co-founder, it might be time to bring in advisors.

Who to Involve and How to Engage Them

Start small. A few high-quality, high-relevance advisors are more impactful than a long list of well-known names.

Look for individuals who:

• Understand your sector (or adjacent ones) deeply
• Have time and interest in early-stage engagement
• Can fill strategic gaps in your team (e.g. clinical, regulatory, commercialisation)

It’s worth distinguishing between informal advisors (friendly experts who’ll take the odd call) and formal advisors, who commit to more regular input and may be granted a small equity stake.

When engaging advisors, be clear about:

• The time commitment expected (e.g. quarterly calls, ad hoc feedback)
• The type of input needed (e.g. technical reviews, investor intros, pitch coaching)
• Whether the role is compensated and if so, how (usually via an equity grant, often in the range of 0.1–0.5% for early-stage advisors, depending on involvement)

Common Pitfalls to Avoid

• Over-indexing on prestige - Big names may look good on a slide, but they’re not helpful if they’re not engaged. Relevance and input matter more than profile.
• Overselling - Claiming to have an ‘advisory board’ of people who’ve only had one coffee with you is a red flag for investors.
• Over-equitying early - Be cautious about offering too much equity to advisors without clear deliverables or timeframes. Use advisory agreements and vesting schedules where possible.
• Unclear expectations - Vague roles lead to mismatched assumptions and limited value. Clarity upfront saves future confusion.

Keep It Lightweight and Aligned

Advisory boards should support your mission, not slow you down. In the early stages, aim for a lightweight structure: a few trusted individuals you can check in with regularly. Keep communication clear, schedules realistic and relationships two-way. The best advisors are aligned with your vision and honest about when they can (or can’t) help.

As your company matures, you can expand or evolve the board to reflect new challenges and priorities.

Where to Find Trusted Advisors

SETsquared’s network is a valuable place to start. Many founders find advisors through incubators, university links, grant collaborations or via investor introductions. SETsquared programmes, such as the Investment Programme, can also help identify, validate or connect you with relevant experts,  people who not only understand your domain but are aligned with the unique challenges of early-stage innovation.

This article is for general information only and doesn’t constitute legal or investment advice. Always consult a professional adviser for your specific needs.

Explore founder resources and mentorship support via the Innovation Platform.