{"id":41525,"date":"2023-10-20T15:14:35","date_gmt":"2023-10-20T15:14:35","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/a-startup-needs-to-be-about-much-more-than-just-its-founders-startupsmart\/"},"modified":"2023-10-20T15:14:35","modified_gmt":"2023-10-20T15:14:35","slug":"a-startup-needs-to-be-about-much-more-than-just-its-founders-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/a-startup-needs-to-be-about-much-more-than-just-its-founders-startupsmart\/","title":{"rendered":"A startup needs to be about much more than just its founders – StartupSmart"},"content":{"rendered":"
Founders who hang on to too much control of their startup as it grows can damage its value, a new study has found.<\/p>\n
The study of more than 6000 private companies found that where founders maintained control of the startup as CEO or by retaining a majority of the board of directors, the company had a significantly lower valuation than companies where founders had let go of some of the power.<\/p>\n
Researcher Noam Wasserman found valuations were harmed by more than 20% in The Throne vs. the kingdom: founder control and value creation in startups<\/em>.<\/p>\n While a founders\u2019 tech intelligence and charisma can bring together a startup team to successfully launch a venture, the need for a higher level of sophistication from a commercial and operational point of view is required to manage its growth as it starts to scale, as the Harvard Business Review reports.<\/p>\n \u201cFounders may lack the skills and interest to lead those activities effectively \u2013 what they typically love is dreaming up and building products,\u201d Ranjay Gulati and Alicia DeSantola write in the Harvard Business Review.<\/p>\n Successful serial entrepreneurs like Hey You founder Rebekah Campbell<\/a> and Hotel Quickly co-founder Christian Mischler know too well the challenges of adapting to growth as small businesses start to pick up.<\/p>\n