"Uber, Zenefits, Tanium, Lending Club CEOs of companies with billion dollar market caps have been in the news -- and not in a good way. This seems to be occurring more and more. Why do these founders get to stay around?
Because the balance of power has dramatically shifted from investors to founders.
Here's why it generates bad CEO behavior.
Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed:
- IPOs/M&A without a profit (or at times revenue) have become the norm
- The startup process has become demystified -- information is everywhere
- Technology cycles have become a treadmill, and for startups to survive they need to be on a continuous innovation cycle
- VCs competing for unicorn investments have given founders control of the board"