Unpopular opinion Most founders are awful at running companies But have enough money to mask it
venture returns cover up a lot of marginal sins across a co's lifecycle. When you're growing x00% MoM it's easy to ignore bleeding cash. I wonder how many exits could be 30-40% larger (meaningful for all parties) if even modest discretion was encouraged.
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To play devil's advocate -- "marginal sins" are a by product of an experimental/growth mindset, if their presence rounds to zero it likely means *less* value creation (in venture scale businesses) This topic eventually leads to distinction btwn being "good at" 0-1 and growth
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directly agree. What I struggle w/ is any discussion on this topics ends with the almost definitional point that growth stage companies should block and tackle like late public cos (line item additions, marginal savings) and not like startup while still maintaining high ROC
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Venture is terrible at causing more companies to die than should... but on other hand amazing at making a few gargantuan. All about knowing the odds and hence game u want to play Ideally before you realise all your equity has piffed away
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Does venture money "make companies die", isn't that in the hands of the CEO? It can enable bad habits but that's not the fault of the cash - that's the fault of the person spending it VCs can give bad advice, even be a destructive force - something I've experienced first hand
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