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On 19th November 2025, B-Briddhi hosted the fourth edition of its Peer-to-Peer (P2P) Exchange Event, bringing together startup founders, impact enterprises, and ecosystem players to discuss the critical theme of corporate governance.
The session featured Mustafizur Rahman Khan, Partner at IDLC Venture Capital Fund I, who shared practical insights on why strong governance structures are essential, not only for compliance, but also for attracting investors, ensuring accountability, and sustaining long-term growth. The session opened with remarks from Adrija Das, Manager of Impact Intelligence and Education at Roots of Impact, and was moderated by Bijon Islam, CEO of LightCastle Partners.
Mustafizur Rahman Khan began the discussion by explaining why governance matters for startups. He highlighted that governance is not about control, but about creating processes, discipline, and accountability that protect the company from operational risks, legal violations, and compliance gaps. Poor governance, particularly around finance, tax, and human resources, can lead to missed filings, delayed audits, labour law violations, and in some cases, operational shutdowns. Institutional investors are extremely cautious about compliance gaps, making governance a critical factor for fundraising and long-term growth.
He noted, “Governance is not a box to tick; it is the foundation that makes your company resilient and trustworthy in the eyes of investors.”
He then shared ideas on building an effective board. Many early-stage founders fear that creating a board may result in loss of control. He emphasised that boards act as guides rather than controllers, providing oversight, strategic input, and operational expertise in areas such as finance, HR, and legal matters. Founders should focus on recruiting board members who add real value, avoid giving equity for standard roles. “A board should help you see blind spots you cannot see yourself, not take your company away from you,” he explained.
Some of the key takeaways from the session:
During the discussion, the audience raised several important questions. One common question was, “How early should startups focus on governance?” Mustafizur emphasised, “Start governance from day one. Even simple processes for finance, HR, and compliance will save you from costly mistakes later and signal credibility to investors.”
Another question addressed balancing compliance costs with operational priorities. He suggested fractional hiring, outsourced compliance services, and shared resources among startups as practical ways to manage costs without compromising governance.
When asked about board composition and fears of losing control, he reiterated, “Founders retain control. Boards exist to guide, not take over. The right members bring experience, expertise, and perspective that protects your company’s future.”
Finally, the discussion touched on mission preservation for impact-focused startups. Mustafizur advised treating investors like a marriage, ensuring alignment from the outset, and holding regular board meetings to prevent mission drift.
The session concluded with an engaging and practical discussion on the realities of corporate governance in early-stage and impact-focused startups. Participants left with a clearer understanding that governance is not a bureaucratic hurdle but a strategic advantage that can strengthen credibility, attract the right investors, and protect the company from operational and legal risks. The overall discussion emphasised that even small, cost-effective governance steps and regular compliance check-ins can have a disproportionately positive impact on a startup’s trajectory.
About the Biniyog Briddhi Programme:
B-Briddhi is a gender-inclusive programme supporting a thriving impact ecosystem in Bangladesh where impact enterprises can grow and scale. This programme is supported by Switzerland and implemented by Roots of Impact and LightCastle Partners.
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