Founders need to uncouple their own idea from its creator – TechCrunch

All founders want the company to thrive without them, but preparing to act on that perception remains one of the most offensive conversations on the market today.After all, the founder (and ours) A certain habit of treating them like rock stars) There is some relevance: Visionary is an interesting person in nature and wild enough to bet that people will. Sleep in a stranger’s house Or come to Bird-friendly app Share unfiltered thoughts daily.

This tension in both societies, both to lead the founder to the success of a startup and to recognize that inheritance is the key to the longevity of any business, is Jack Dorsey’s. Recent Twitter resignation tweets It stood out to me.

“There’s a lot to talk about the importance of a company being’founder-led’,” wrote Dorsey. “In the end, I think this will be severely restricted and a single point of failure. I’ve worked hard to get the company out of its founders and founders,” Dorsey said. It is important to be free from the influence and direction of the founder and be able to become independent. “

Dorsey started a conversation where I had been talking to the founders and investors for a whole week. It’s healthy for a company to remove ideas from the founder’s identity and not feel that the company is essentially tied to its creator. But it requires a real conversation about attribution.

Last month I wrote about importance Establish a differenceBetween founders, founding team members, advisors, investors, angel investors, and early employees, both in ownership and incentives. This week we need to explain why it’s important to understand how governance changes over time, and why one day the founder’s title is “nothing vice president.” ..

Stop learning weeds

“At some point, the founder will be the empty vice president.” Iris Choi,partner Sluice, Said during our latest equity podcast. “In the beginning, you are the person responsible for the product, the head engineer, the individual contributor, as well as the person who picks up all the loose ends and fills the gaps.”

The identity crisis begins when a company reaches a stage of growth. Then the founder doesn’t look like a crappy engineer pulling all night, but a visionary who is responsible for hiring talent and making sure the train is running on time. Looks like.

“To some extent, you have to promote the founder, and you’re no longer just in the weeds,” Choi said.

Fractional co-founder Stellahan He recently passed Y Combinator and raised millions in seed rounds. Her business is to make ownership accessible to strangers and friends. In short, we had to discuss with our co-founders how to do it internally.

“When you are a co-founder, you are not an executive leader, but very active in the execution of your product. [when] It’s about how well others can take the reins, put things into action, and empower the company to grow, “she said. “If you need an orchestra conductor, it’s about communicating that vision and magic so that everyone can be a team and carry out the entire experience together to reach the audience and consumers.”

As the company grows, it’s indisputable to start building smart executives around the best founders, but for those who think of an idea, resign and make room for another acting CEO. The opposite is to say that the time has come. In other words, what do you do if you are not ready to resign, or at least not ready to leave?

Han believes it results in incentive adjustments.

“The ego makes up the majority of people, so they may be doing what they think is right for them, but not the whole company,” she said. Executives) need to understand “what are the more holistic incentives that everyone needs to adjust?”

Then she said the founder needed to withdraw from “being in the weeds in the hot moments, and doing the best overall.”

To become accustomed to the diversification of powers within a company, investors need to make significant changes to the way they write checks. Today, having an idea and gaining credit for that idea is the most lucrative currency for entrepreneurs when it comes to betting on venture capitalists. What is the alternative to that incentive?

Due diligence is fine-tuned

“Every company wants a star founder to recruit star teams and turn them into the next PayPal mafia ecosystem,” he said. Blair Silverberg, CEO and co-founder Ham Capital. “Few companies achieve this vision because of what the team does, how those actions bring results to the business, and when the individuals involved start a new business or are new. There is a lack of clarity about how you can take ownership of the wins your team creates when you join the business. “

Silverberg describes some of Web3’s promises to formalize processes and make it easier to see transparently who owns and runs part of a business. But entrepreneurs don’t think they have to wait until the school of thought becomes mainstream to see the shift happen.

“The concept of a hedge fund manager with a portable track record is incredible in the context of business operations,” he said. “If we can create a world with similar achievements, we can match the capital and talent of society at the level of people, not just companies.” And, as I said last month, who in the idea economy? It’s important to prove that you’ve come up with a winner’s business strategy (both legally and financially).

However, within the pitch zoom. Early investors who want to bet on a successful company rather than alone will need to impose their ability to hire, change their minds and understand when to leave.

Sonia Gocare, GP of early stage fintech fund Venture SouqShe said she is usually looking for a co-founder rather than a single founder, even when she invests. That’s because it reduces the risk to the company in the event of an unplanned succession and helps someone balance others.

“Many of our founding teams spend some of their due diligence focused on whether the two founders work together well. Is there chemistry between them? Is there a synergistic effect? Do you have a bowel sensation? “She said. “And if you feel tension appearing, it’s a red flag.”

Dorsey’s claim that it is important for a company to be self-reliant may not require all founders to be expelled from the company at any given time. Instead, as Christine Tao of SoundingBoard pointed out, it could be the perception held by “excellent leadership.”

“The CEO is just a person-and much of our identity may be wrapped up in our company-we’re not perfect,” she said. “Companies can evolve, change, and require different leadership at different times.”

Founders need to uncouple their own idea from its creator – TechCrunch Source link Founders need to uncouple their own idea from its creator – TechCrunch

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