The Real Independence Day: When Every Founder Builds Their Dream Board
July 4th, 2025
Today, as fireworks light up the sky and we celebrate America's independence, I can't help but think about another kind of freedom that's within our reach: the freedom for every founder to build the advisory board that will actually help them win.
Here's the current state of play in 2025: 60% of heavily funded U.S.-based private venture-backed companies did not have a single female board member. The 2023 class of new corporate directors saw the percentage of racially/ethnically diverse directors among new board members drop from 45% in 2022 to 36% in 2023.
We're building companies for a diverse world, but our boards don't yet reflect that diversity.
The Opportunity on the Table
While we celebrate freedom today, most startups are still building boards the old way—through limited networks and traditional connections. But there's a better path forward.
The data tells a compelling story: Companies in the top quartile for board-gender diversity are 27 percent more likely to outperform financially than those in the bottom quartile. Companies in the top quartile for ethnically diverse boards are 13 percent more likely to outperform than those in the bottom quartile.
Higher levels of gender diversity of FTSE350 boards positively correlate with better future financial performance (as measured by EBITDA margin). The opportunity is clear.
The Chemistry Connection
Here's what excites us: We have data proving that diverse boards make better decisions and result in better outcomes and profits for companies. But the real magic happens when you find advisors who truly click with your vision and style.
Traditional board building often feels transactional—you work with whoever comes through existing channels, whether or not they understand your market, share your communication style, or can actually help you scale.
The evidence suggests diverse boards were better able to generate innovative ideas and were more effective at implementing them. Additionally, diverse boards were better equipped to identify and mitigate risks associated with new business ventures.
The question is: How do we connect founders with these game-changing advisors?
The Multiplier Effect Waiting to Happen
The opportunity is massive. An estimated $5 trillion globally could be unlocked by optimizing our leadership teams.
For every woman added to a company board with ten directors, there was on average a two-point increase in holistic impact scores. Across all industries surveyed, more diversity in boards and executive teams is correlated to higher social and environmental impact scores.
The virtuous cycle is real: Companies with women CEOs have significantly more balanced boards than those run by men—33.5% women versus 19.4%. Success builds on success—when we expand access.
This Is Our Moment
At The Fourth Effect, we're not waiting for gradual change. We're building the infrastructure for every founder—regardless of background—to access the advisors who will actually move the needle for their business.
Our AI-powered platform matches founders with advisors based on what really matters: expertise, communication style, and chemistry. We're creating new pathways to board positions that didn't exist before.
Here's what the future looks like:
Founders finding advisors based on actual fit—expertise, communication style, and chemistry
Operators and experts building wealth through board positions, expanding beyond traditional networks
A marketplace that values results and relationships equally
Boards that reflect the markets they serve and the future they're building
The Path Forward
This Independence Day, we’re focused on creating real freedom of choice. Every founder deserves access to advisors who truly understand their vision. Every talented operator deserves the opportunity to serve on boards. Every company deserves the competitive advantage that comes from diverse perspectives.
Board diversity should be a priority for every organization. But priorities need infrastructure to become reality.
The Fourth Effect exists because we believe in building that infrastructure. We're creating a world where geography, background, and traditional networks don't limit your ability to build an incredible board.
So here's our invitation: Let's build a new ecosystem together. Let's create access where it didn't exist before. Let's design the future where every founder gets to build their dream team.
Join us. Because real independence means the freedom to build the board that will help you change the world.
The future isn't coming. It's here. And we're building it one perfect advisor match at a time.
Happy Independence Day. Now let's get to work on the freedom that really matters.
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The Fourth Effect, an AI-powered platform transforming startup advisory boards into an unfair advantage. Join the movement at thefourtheffect.com.