In the tumultuous ocean of entrepreneurship, a peculiar phenomenon has recently surfaced: a wave of founder-CEOs, who once navigated their ships through the stormy seas of venture capital fundraising, are now stepping down.
Just this past weekend, a well-known figure, Jason Lemkin, revealed a personal observation that set off alarm bells—two CEOs, both of whom raised over $50 million, have chosen to leave their startups behind. His casual remark hinted at a deeper undercurrent: is this the new normal?
The Dwindling Resolve of Founder-CEOs
Consider this: despite substantial financial backing—$20 million, $50 million, even a staggering $200 million—these leaders are abandoning their posts. With teams numbering in the hundreds and thousands of loyal customers hanging in the balance, their exits raise eyebrows.
Yes, it’s not entirely unprecedented. Building a unicorn, or even a close-to-unicorn, is like scaling a mountain where the paths are obscured and the terrain is treacherous. The pressure is palpable, especially for those whose meteoric growth has fizzled out faster than expected.
Logically, one would assume that founder-CEOs are the anchors during such turbulence, tasked with rallying their teams to pivot and adapt. However, many are now surrendering, leaving behind the very empires they built. Take it from me—although I never considered myself a stellar founder, I’ve endured multiple near-catastrophic instances and emerged with successful exits. The same can be said for numerous respected leaders in the field; their journeys were fraught with peril.
The Culture of Quitting
There’s a burgeoning rising tide—a “quitting culture,” if you will. It permeates various sectors, with sales teams being notably affected. This mentality often shifts blame away from oneself, casting shadows on VCs, market conditions, or an unyielding economic downturn.
Take, for instance, my recent encounters with those two CEOs I’ve known for years. They raised formidable funds, yet, seemingly out of the blue, relinquished their titles and responsibilities. One has migrated to YouTube, while the other is exploring seed investments. Bravo to them, it seems!
But then there’s the stealthy variant—two startup leaders I backed basically handed over their entrepreneurial babies to other companies. Yes, even with millions still nestled in their bank accounts, they chose to turn their backs, opting for a quiet exit instead of the fight.
Is this merely a reflection of the evolving landscape of startups?
As someone who has grappled with the thought of throwing in the towel on several occasions but ultimately pressed on, I can assure you: resilience often leads to redemption.
Take a recent dialogue with Andy Wilson, founder-CEO of Logikcull, as a case in point. I had the privilege of being the first investor in Logikcull, and watched as it transformed from a rocketship into a stagnating vessel for years. Andy faced the harsh reality of rebooting the entire sales model and product strategy. The process was grueling. Yet, they didn’t give in. Fast forward, they landed a staggering exit near $300 million—an incredible achievement that would have evaporated had they chosen to quit.
Don’t waste those precious years battling against the odds. The path may be fraught with challenges, but those trials are what forge resilience and eventually lead to success.
