Banking isn’t the only “single point of failure” entrepreneurs should rethink
Silicon Valley Bank is a good reminder that startups, often steeped in the world of risk and scrappines, sometimes forget to think about the obvious: single points of failure. But just as it makes sense to rely on a supportive bank, so does having one person lead your business to success. Now that we’ve seen that the first didn’t really work, maybe it’s time to rethink the second.
TechCrunch+ interviewed a number of early-stage founders who are building companies that have raised a Series A or less, to understand how they think about succession. The consensus is that it’s not a priority, or even a priority, in a world where founders are more focused on track, product market fit, and growth.
Can this be changed?
It’s hard to get a company’s success beyond the founder or CEO charged with being its face. I mean, there’s a reason VCs love co-founders: 80% of billion-dollar companies launched since 2005 have had two or more founders, according to one study. At the same time, co-founder breakups are one of the most common reasons startups fail. contradictions! We love them.
Banking Isn’t the Only “Single Point of Failure” Entrepreneurs Should Rethink by Natasha Mascaren, originally posted on TechCrunch