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On the flip side, I've seen founders cling too tightly to control. Sometimes the guy that is really good at getting a version 1 out of the garage is not the sa

by uuilly 16y ago

On the flip side, I've seen founders cling too tightly to control. Sometimes the guy that is really good at getting a version 1 out of the garage is not the same guy that is good at calling the shots once it's a 60 person company. Taking the stance that "I want to retain control," is obstinate and egotistical. The proper stance is, "I want to retain control until someone better comes along." That may be never. But it's the right attitude to have. In the end, it's not about who controls what, it's about who's more likely to make all the time and money that's gone into the company worth more.

brlewis 16y ago
Is it really possible to get VC funding when all you have is a version 1 out of the garage? I was under the impression that investors wanted to see traction before putting in serious money.
- gyardley 16y ago
  Yes, it's possible - a serial entrepreneur with a good track record can often raise money on an idea. For us mere mortals, it can be done if you're raising a small amount of money and you're in an exciting space.
- uuilly 16y ago
  It is, but it's less likely. I should have phrased that better. What I meant by out "of the garage" was the end of the really dynamic period of the company. You can be physically out of the garage with an angel investment but still be constantly changing your mind on macro decisions. By the time you're at a series A, you're generally more certain of your direction. From what I've seen, the person who is good at the really dynamic thinking part is not necessarily good at the focus and execute part and vice versa. Being a CEO of a larger company can actually be really boring for a dynamic, hyper-inventive type. I used to fancy myself as a technical CEO until I got a better understanding of the role. A great CEO is priceless and a great inventor is priceless. If it's the same person, then great. But there is no need to force it if it's not.
webwright 16y ago
There's control and Control. Non-founders having board control means that you don't get to make the choice to replace/augment yourself as manager. You're absolutely right, but what you're talking about has very little to do with board control. Taking the stance that "I want to retain BOARD control" isn't obstinate and egotistical-- it's basically just saying, "As the guy who works on this company for 60 hours a week, I trust myself to know when it's time to bring in professional management".

by uuilly 16y ago

brlewis 16y ago

Is it really possible to get VC funding when all you have is a version 1 out of the garage? I was under the impression that investors wanted to see traction before putting in serious money.

gyardley 16y ago
Yes, it's possible - a serial entrepreneur with a good track record can often raise money on an idea. For us mere mortals, it can be done if you're raising a small amount of money and you're in an exciting space.
uuilly 16y ago
It is, but it's less likely. I should have phrased that better. What I meant by out "of the garage" was the end of the really dynamic period of the company. You can be physically out of the garage with an angel investment but still be constantly changing your mind on macro decisions. By the time you're at a series A, you're generally more certain of your direction. From what I've seen, the person who is good at the really dynamic thinking part is not necessarily good at the focus and execute part and vice versa. Being a CEO of a larger company can actually be really boring for a dynamic, hyper-inventive type. I used to fancy myself as a technical CEO until I got a better understanding of the role. A great CEO is priceless and a great inventor is priceless. If it's the same person, then great. But there is no need to force it if it's not.

webwright 16y ago

There's control and Control. Non-founders having board control means that you don't get to make the choice to replace/augment yourself as manager. You're absolutely right, but what you're talking about has very little to do with board control. Taking the stance that "I want to retain BOARD control" isn't obstinate and egotistical-- it's basically just saying, "As the guy who works on this company for 60 hours a week, I trust myself to know when it's time to bring in professional management".