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Venture Capital - Wednesday, February 8, 2006

Give 'Em The Hook - VC Says Startup CEOs Too Often Outstay Their Welcome

VC Pascal Levensohn, Managing Director of San Francisco-based VC firm Levensohn Venture Partners, has published a white paper with the headline "Warning Signs for Venture-Backed CEO Replacement Often Ignored."

We agree with Levenson's thesis and think it well represents the venture industry, in contrast to the public equity sector where CEOs are seldom challenged. However, it strikes us that managers who are considering talking an investment from Levensohn might get spooked that he is a grave dancer.

Levensohn - Author of Treatise on Firing Tech Startup CEOs

CEO Behavioral Warning Signs

1. Staying the wrong course: Rejection of board input

2. Offsite and out of touch: Disengaging from daily operations

3. Indignation: Emotional and combative behavior

4. Silent treatment: Cutting off information flow to the board

5. Buck-passing: ignorance of key details and blaming other executives for unexpected shortfalls

6. Pulling up the drawbridge: Directing his or her management team to deflect board inquiries

Read - Rites of Passage" white paper . It is also available in Hebrew translation on the site as well.