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One of the big things I know about is the being "in love with the technology". Founders get replaced in their own companies because they focus on improving the
by phamilton 16y ago
One of the big things I know about is the being "in love with the technology". Founders get replaced in their own companies because they focus on improving the technology, rather than revenue. There is a balance, but part of the reason VCs and investors get shares is because their financial interests should be represented in the company. If as a founder you aren't representing their financial interests, then of course they will replace you.
There are big dramatic forced resignations, but often there are simple restructures. A founder will be removed as CEO, but stay on as a VP of development, for example. His ownership stays intact, but the executive leadership will be more aligned with the interests of the investors.