Re: Pascal's View - New comment requires moderation on: Link to Archived Grant Thornton Webcast; Accounting Bloggers Weigh in on Study

Deny

Thanks for your comment. You accurately point to an occupational hazard when dealing with VC's who are over-committed-- but the it is the fiduciary duty of a director to exercise oversight in their role on the board. VC's who are not responsive or proactive need to be reminded of this by the board chairman or lead investor. The consequences of passive or passive-aggressive behavior by VC board members who want to avoid the responsibilities associated with a founder replacement can be severe, and it starts with losing money on their investment.

To your second point, I agree that Founders need to be on board with the replacement process or else they must be gone. The nuance, which I am sure you see often, is that some founders may say they are on board but actually they are not, and the downside is that they may work to undermine the process. I've unfortunately lived through that experience once. The impact to the company was severely negative as windows of opportunity vanished because the outgoing founder was not truthful with the rest of the board and poisoned the well for competent replacements to come on board until the company had run out of runway and the viable candidates disappeared.

Thanks for your comment. In my experience we have moved founders into successful positions as Chief Technology Officer, President of International Sales, and Executive Vice President Corporate Development. These have been "real" positions as opposed to just placeholders. In one case we allowed a founding CEO who was truly the Chief Evangelist for the company to establish an independent sales organization and receive premium commissions for closing business-- a strategy which proved to be extremely successful. The key is pre-emptive communication-- from both sides. It is critical to have conversations that lead to self awareness of the founder's limitations and to mutual recognition between the board and the founder that an end-game is in sight, even though it may be several years away. To answer your last question, the most common stage at which this occurs is during the transition from product development to accelerated revenue growth. Some CEO's can take a company through R&D but can't deal with customer-facing requirements because they are internally focused as opposed to customer driven. Others can take a company from $1 million to $10 million in revenue but can't manage a team of 50 or 100 people. Nowadays, there is no clear financing round associated with these milestones-- it could be a series B or a Series AA.

Re: Pascal's View - New comment requires moderation on: Liink to Archived Grant Thornoton Webcast and Bloggers from Accounting Profession Weigh in on Grant

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Re: Pascal's View - New comment requires moderation on: Book Review-- 'Letter to a Christian Nation' by Sam Harris

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Re: fussball forum commented on Sarajevo, Lehman Brothers, and the Panic of 2008

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Re: Jay Meier commented on Setbacks in White House and DHS Organizational Responses to Securing Critical Infrastructure—a

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