Breaking Analysis: The New Start-Up Founders Playbook
Unlike the old era of entrepreneurship we live in a new moderner era where the frictionless environment of access to and sharing of information creates new levels of transparency. This dynamic is creating all kinds of new disruptions and efficiencies in the start-up eco-system. Let me share with you my opinion and observations.
On shinning example is Marc Andreessen. He is a true Internet legend and how has quickley become a VC alpha geek & rock star. Marc knows that the typical media cry to fire founders and bring in so-called “adult leadership” is not the model for the future. One reason why Andreessen Horowtiz is so successful – and so disruptive to the old VC model – is because of the commitment, business training and ongoing mentoring they provide start-up founders.
Old media believes what I call venture capital “Playbook, Page 23”, where kicking the founder to the curb as soon as possible and letting the big investors take control is the way to ensure value. This is especially true the moment the going gets tough. But its an outdated model.
Statistically, keeping founders with the company is the smart choice. Suggesting that Mark Zuckerberg should be fired, as the New York Times did, is ridiculous. Zuckerberg is bright, creative and understands his business and his industry better than anyone that might be brought in.
What founders need are the tools and the Big Data that allows them to make the right decisions and not allow their “blind ambition” cause them to take the company down a dead end. Firms like Andreessen Horowitz are doing so well because they provide the skills, mentoring and the Big Data that allows founders to better manage and grow the business.
Today’s founders are typically much more experienced. This is why so many, like serial entrepreneur Randy Adams, go on not only to found companies but become investors as well. Gone are the days where investors wanted quick control of the company, wanted to ensure themselves a good exit, and felt they couldn’t trust the founder. Big Data and transparency are helping to bring an end to this outdated thinking. Thanks to data, analytics, training and transparency, founders can make better decisions. Investors no longer need that “plant” inside the company. They know what is going on already.
This represents a new era of entrepreneurship and I believe it is disrupting the industry. We now have founders who have the skills and resources to stay on long after the early stages. Investors are now more patient and aware of what is actually happening inside the company. I think this is a very positive sign for entrepreneurship – and the overall economy.
Obviously, in some cases, founders may need to leave. Too many still want to rely on their gut rather than the information that is available to them or the wisdom of a trusted mentor or colleague. But gone are the days where founders were shown the door so an “adult” could manage the business.
Today’s founders are the adults.
My Video Breaking Analysis Below:
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