Silicon Valley Bank is a good reminder that startups, often entrenched in a world of risk and adversity, sometimes forget to think about the obvious—single points of failure. But just as it makes sense to trust a community-friendly bank, so does trusting someone to lead your business to success. Now that we’ve seen that the former didn’t quite work, maybe it’s time to rethink the latter.
TechCrunch+ caught up with several early-stage founders who are building Series A or smaller companies to think about succession. The consensus is that the world in which founders focus on pitch, product-market fit, and growth is neither brain-dominant nor detail-dominant.
Can this be changed?
It is difficult to transfer the success of a company beyond an individual founder or CEO. I mean, there’s a reason VCs love co-founders: Eighty percent of billion-dollar companies started since 2005 had two or more co-founders, one study found. At the same time, the breakup of the co-founder is one of the reasons for the failure of the startup. Contradictions! We love them.
Banking Isn’t the Only Point of Failure By Natasha Mascarnhas Originally published by TechCrunch Entrepreneurs Should Rethink