This is particularly important in the early to mid stage of a startup. I've seen cases where professional CEOs were brought in pre-funding or just as the compan

This is particularly important in the early to mid stage of a startup. I've seen cases where professional CEOs were brought in pre-funding or just as the company was getting funded. The CEOs that I saw in these instances simply didn't know how to operate creatively in an environment with tight constraints, so they did the only thing they knew how to do: bring in unnecessary layers of middle management which of course results in burning through cash before achieving a scalable business model.