Where Venture Capital is Missing Out:
The classic VC Model is driven by a technologist, coming from the lab - whether in a company, or a university - and then getting enough business acumen to put a plan together, cobble together a team, and find a VC to fund them, with the founding technologist usually at the top. Some times it works, but rarely. Usually in the first 2 year or so, but often much later, the technologist is forced out of the CEO role - but until then the Peter Principle has been at work - they have risen to a position beyond them, and become the stumbling block. The resources wasted can be staggering, but it is hard to go back. This is known as founderitis.
One of the key problems is that the technologist is in love with the technology, and being in control cannot conceive of it failing, and certainly won't let it fail early and cheaply, they have to beat it to death, and bleed the company dry in the process. And, as the leader of the company, they get to play the corporate schmooze game and feel like big shots. But, they don't have time for the value they really should be adding to the company - immersion in the technology.
Now, their are exceptions where a technologist transitions into being a great CEO, but that is the exception not the rule, but the mistake is made over and over and over again by the investors.
Next post for what I propose as a better VC model in the current climate especially.
Rman |
