linda kanner |
rob rosen |
everett shorey
The job of the CEO of an early-stage, high-growth company is difficult. We know, because we've done the job before. The task of raising capital competes with the time-consuming demands of building a team and developing a sustainable business. Even the most experienced CEOs know that they cannot cover all the bases themselves.
Unfortunately, early stage companies can never support a management team capable of handling all the growth issues themselves. Smaller companies are equally short of financing and of management time and depth. Therefore, CEOs of early stage companies have reached outside to Advisory Boards and Boards of Directors for support. But neither group really meets the need.
A lot of early-stage companies think that having a broad team of senior advisors should be most helpful. We've found that, in many cases, those advisors that are closest to the CEO have limited usefulness. This is because many early-stage Board of Directors are small and composed of investors and/or industry experts who do not have the time or experience starting and running a company. More importantly, they are the CEO's "boss" rather than "peer," so sharing too much with one's board is risky for the CEO.
Traditionally, CEOs of early-stage companies recruit advisors and advisory boards to support the technology or early business development efforts and to create credibility during the fundraising stages. As a result, the advisory team may not have the ability to provide personal and strategic support to the CEO because they often loose their relevance as the business grows.
All of this leaves the CEO exposed - with the need to make decisions in areas for which his/her background may not be adequate at a time when the stakes are incredibly high.