Cofounder · Executives

Do investors avoid companies that have replaced their executives?

Olga Dybenko QA tester

April 19th, 2017

I’ve read a lot on CoFoundersLab Discuss about what to do if you have issues with some of your cofounders and executives. What I’d like to hear more about is the outward optics of that situation. Let’s say you bought out a cofounder after a year and replaced your CTO. Do investors want to see a team of people who have been together since the beginning? Do they view shake-ups as the outward manifestation of an uncertain team and shaky idea?

Dane Madsen Organizational and Operational Strategy Consultant

April 20th, 2017

No, they pay more attention to executives that have self terminated. They want to know why. Have an answer that passes the "smell test" but expect them to want to talk to the person. They need to know (and can assign real versus stated reasons) why the person is no longer involved, such as "I needed a steady paycheck because of a new baby" versus "the CEO/Founder is a delusional ass&^%$"

They will want to know why a person left, depending on the time in grade and why you chose them, but self-termination is crucial