VC Backed Firms Are Better Managed?

from the oh-really? dept

A new study from Stanford suggests that companies backed by venture capitalists are better run than those that aren't. In some instances I'm sure that's very true. However, I think the metrics used to determine this are a bit questionable. It was based on how soon the company hires a VP of marketing and ousts a founder in favor of a CEO. I'll admit that in many cases, those are necessary parts of running a business, but that says nothing about how good these new people are, or how bad the original founder was.
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  1. identicon
    Bill G, 21 Feb 2001 @ 6:56am

    Not convinced

    I'm not convinced that 'ousting the founder' is such a useful metric for success. I'll ask Michael and Larry for you though.

    link to this | view in thread ]

  2. identicon
    Ed, 21 Feb 2001 @ 11:35am

    What a Joke of a Study

    I seriously hope that the study is more substantial than the article describes, because the methodology is ridiculous. Why use very questionable indirect measures of a company's success when they should use a direct measure, like profits?

    It also seems that all they're showing is that VC-funded companies tend to be run the way VCs want them to run, particularly when it comes to ousting the founder. That's what VCs want to do; they'll install a CEO of their choosing who has closer ties to them than the founder.

    link to this | view in thread ]


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