Professional CEOs at startups: Quick wins or mission control?

As the Indian start-ups world matures, it is starting to imitate its US counterpart in many ways. Right from introducing business models that have been tested in the American market to going after aggressive market share acquisition, some would have thought they have seen it all.

And then change of guard happened. Poster boys of the Indian startup ecosystem, have come under pressure from investors to move towards profitability, lower the cash burn and get into cash conserve mode. As a result of this, many investors who hold large stakes in startups had to bring in professional CEOs to run the operations and founders stepped down (Read Flipkart, Zivame).

Many founders are now thinking if this trend will continue or was it a one off noose tightening exercise at one of the most heavily funded ‘startup’ of the country. Before we reach to any conclusion, it will be a good idea to examine pros and cons of handing over a passionately built startup to a professional CEO or if investors should let the founder be, because businesses are built with passion and conviction which only a founder brings to the table. Just exactly, what is the message being sent out by VCs to Indian startups? Read more….

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