Part of the reason there’s so much backlash against VC funding is that when you end up driving your business into a wall at 100mph, it’s easier to say “I shouldn’t have raised that money” than it is to admit “I shouldn’t have spent that money.”
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Raising and not spending it while growing slow will get a CEO fired. Spending it with the same outcome is acceptable.. like active managers on Wall St, CEOs are optimizing for job security Change the incentives
Unless a startup is on a *mega* successful growth trajectory, a founder usually won’t (and often can’t) get fired for growing too slow.
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Imagine we have different sample size/pools. I have seen this + founders getting booted right after investors get a majority stake. Investors turn around and sell the co immediately. Founders ended up with nothing
Thanks. Twitter will use this to make your timeline better. UndoUndo
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