A VCs most critical task

I have decided that an early stage (Series A-B) venture capitalist’s single most critical task is to make certain their portfolio companies do not hire the wrong executives.

There is nothing more detrimental to a growing company’s progress than hiring the wrong executives just as the business is starting to scale - exactly when the CEO and Founders are letting others own key areas, teams are hired, people are trained, and culture is set. The wrong executives blow resources, repel critical talent, and in many cases kill companies.

It is not just about the executive’s skills, culture, and ambition, but their stage-fit for the company. Process too early is deadly if it comes at the expense of creativity, scrappiness, and momentum.

Startups need fire starters, not suppressants.

A VC can rise above if he or she can actually help the company identify and recruit the BEST executives, but that’s icing on the cake beyond the foundational need to block the wrong executives from entering the company.

* I didn’t include Seed investors because these companies aren’t yet scaling and hiring executives, they’re building product and validating markets.

** I am debating with myself if this means that industry-focused funds with more specific talent networks are better. Perhaps true in B2B.

10 months ago  /  0 notes