Expensive SaaStr: Will the Failure on Bench Make VCs Reconsidering Changing Founders as CEOs?
I don’t assume so.
I don’t know all the main points, however what I can inform you is 95%+ of the VCs I do know and work with don’t wish to change the founder CEO ever. Solely as a really final resort.
Sure, within the previous days of tech, it was extra frequent. Nevertheless it all started to alter with Fb, and simply accelerated since. Virtually all VCs need the founders to go the gap, if they’re in a position and wish to.
Actually, in 90% of SaaS IPOs, the founder CEO remains to be the CEO at IPO:
Of all the investments I’ve made since 2013, in just one have the VCs “changed” the CEO. And in that case, one, I opposed it (I didn’t have a vote). And two, it occurred as a result of the founders raised $100m+ and started to expire of cash. That’s when it’s commonest at this time. When a start-up raises a ton of capital, misses all of the milestones, and is at risk of operating out.
Nonetheless, keep in mind, the extra you elevate in enterprise capital, the extra the stakes go up. Elevating $100m+ isn’t a sport, and it could actually result in conflicts the place there isn’t alignment (or once more, when the money begins to expire):
Extra right here:
