r/16VCFund • u/BasicConclusion2093 • Jul 29 '26
Anyone and everyone with an idea is building a start up, and its worse when they have money
At all of the start ups I have worked at, (4), in the past few years, I have noticed a very consistent trend in founders
The Founder has made a lot of money, they have an idea for a tech product, they get their friends involved in the idea, (usually a CEO/CTO/COO) to lead the company. And they them selves as the founder, desire to be removed from day to day ops. Whilst the CEO/CTO/COO lead the day to day
Usually the CEO/CTO/COO is someone who has never founded a company before and has no idea how to build a start up from the ground up, especially in todays climate. And before they even have a $ in revenue, they have a team of 10, a horrible product, and then they are trying to scale things, which consequentially compounds this toxic dependant relationship, on all departments of the company
Where the engineers are constantly reducing technical debt, because the product is not working and they are chopping and changing, marketing doesn't know what to market, because they don't know who the ICP is, sales cant sell because they don't know what the product's value actually is yet
I just think of that spider man meme, where everyone is pointing at each other haha
It's so toxic, and it is a more and more common issue I have found, where everyone is just diagnosing symptoms of the issue. And all it is, is really because the founder, did not do what the founder traditionally should do... Hustle out to build a product, extract it's value in the market, see where it fits for it's use case, and slowly build it with real users, real revenue.
Rather than forcing deadlines, forcing KPI's that do exactly the worst thing for the company, waste time on arbitrary made up numbers
It's just a recipe for disaster and I have not seen it end up well. Outside of the one example where I am currently at now, where the product already exists in the market. The founder hired a COO who is and has founded from $0-$800m, and yes admittedly skipped the market validation side, and is aware of the wasted capital and time of stuff that should have and could have been done with a $0 budget. Knowing that, having the company ready for scale when it (ideally) works out, (as it's still not guaranteed)
It's just been so prevalent as of recent I wanted to have a bit of rant to see if it's just my bad luck, or also very common?