When founders go too far: some start-up CEOs have too much power. Here's what to do about it

When founders go too far: some start-up CEOs have too much power. Here's what to do about it

Author: 
Blank, Steve
Publisher: 
Harvard Business School Press
Date published: 
2017
Record type: 
Journal Title: 
Harvard Business Review
Source: 
Harvard Business Review, Vol. 95, No. 6, November-December 2017, pp. 94-102
Abstract: 

The article examines the shift in power between startup founders and venture capitalists. Venture capitalists would routinely replace founders once startups scaled; however, the decline of initial public offerings and a reduced emphasis on management credentialsAaAeAeA have lessened oversigh and venture capitalists respect founders' propensity for maintaining innovative and flexible cultures. This has led to founders having a disproportionate amount of power. To solve this issue, founders should be paired with seasoned chief operating officers, directors who have public-company experience should be recruited, and venture capitalists should limit investments in firms in which the founders possess voting control of the firm's stock.

Language: 

CITATION: Blank, Steve. When founders go too far: some start-up CEOs have too much power. Here's what to do about it . : Harvard Business School Press , 2017. Harvard Business Review, Vol. 95, No. 6, November-December 2017, pp. 94-102 - Available at: http://library.au.int/when-founders-go-too-far-some-start-ceos-have-too-much-power-heres-what-do-about-it