3 A venture-backed turnaround: A dangerous place to be

 

This chapter covers

  • Do you know when investor priorities might clash with yours as CEO?
  • Is your startup's path aligned with your investors' 10-year time limit?
  • Are you ready to say no when an investor asks you to take on a venture-backed turnaround?

There can be a lot of benefits in joining an existing startup with a great CEO to learn from on the way to being ready to be CEO yourself. But it has to be the right thing for you, not just for investors, who are not looking out for your interests first; they are looking out for theirs first. I also want to point out the danger inherent in being the leader of a venture-backed startup that requires a turnaround. In fact, the concept of a venture-backed turnaround is an oxymoron because VCs want their companies to build, grow, and exit—the last thing they want to spend a lot of effort on is a portfolio company that is failing and needs remedial action to even survive. And if you are new to the CEO role, you never want to be thrust into the CEO role of a turnaround. I unfortunately learned several of these lessons the hardest way possible.

3.1 Thrown into the deep end

 
 
 

3.2 Turning NovaSoft around

 
 

3.3 The human cost of VC investments

 

3.4 The moral of this anecdote

 
 
 
 
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