75% of founding CEOs that raise VC are no longer running the company by the time the company exits.

During the normal course of browsing this week I ended up stumbling across this post. The post goes on to explain one companies struggles and how they recently took Venture Capital money despite the fact that 75% of CEO's are forced out of their own company at some point by these Venture Capital companies. In any event it got me to thinking and I figured I'd post my thoughts for you all to read.

So we all hear about all the great Venture Capital companies that have cashed out on companies like Facebook, Google, MySpace, etc. However we rarely hear of the Venture Capital firms that lose money when their venture backed start-up go under. While this is not typical it bring up my main point, Venture Capital companies are pouring money into your company, not you. In fact if you are out there raising capital you'll quickly learn that it's all about the pitch. In fact it's just like poker in a way. They are putting a nice size of their pot on you, hoping to make money on their investment. So is it wrong for them to out a CEO if they feel that they can find someone better qualified or someone who can bring this company around quicker?

Personally it's my opinion that if I can get Venture Capital to grow my business and help it reach it's full potential, then I've already won. Now yes, as soon as I sign on the dotted line (and are any lines truly dotted anymore these days?) I can ultimately lose my job and all of my hard work would be for nothing, but at that point, I'd rather see my idea flourish with the best possible leadership in place than have it fall under my inexperience or leadership.

Now on the other hand I know a lot of people that would say the exact opposite, and would rather retain control. But when does that control hurt your decision making ability and your company culture? I mean the people who prefer to keep control of their company rather than go out and get Venture Capital money, are those that are likely to be control freaks, wanting their hand in every aspect of the company. This attitude only help tear the company apart and make your employees wonder if the best person is really running the company they are putting their hearts and souls into.

So my message to people is not to get caught up in the logistics of a possible VC deal, but rather take a look at it with an open mind. Would you rather have your company around for 3 years if not longer with a different CEO or in the deadpool after a year with you at the reins?