TLDR:
Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled, balancing the interests of stakeholders such as shareholders, management, customers, and regulators.
Why It Matters for Startups
Good governance attracts investors, enables scale, and reduces legal risk. Poor governance is a leading cause of startup failure and investor disputes.
Corporate Governance in Startups
For early-stage startups, corporate governance is often minimal — a small founding team making decisions informally. As a company raises institutional capital, governance formalizes rapidly: investors require board seats, information rights, approval rights over major decisions, and regular financial reporting.