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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Comments on “VC Backed Firms Are Better Managed?”

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Ed says:

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.

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