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The Entrepreneur's Resource for Finance Site Overview | Free Stuff | Contact Us | About Us |  |
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Profit Dynamics Venture Capital Survey Introduction | How Long to Close | How To Contact | With What | Valuation Factors |Probability Competition | Define Management | Substitutes? | Find The Deals? | Decision to Invest | Why No? Worst Business Plan Mistakes | Common Plan Mistakes | First Impressions |
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Venture Capital SurveyDealing With A Lack Of CEO Experience The final question asked is one that entrepreneurs particularly struggle with, "What can entrepreneurs do if they don't have experience as a CEO, or if their management team is not complete?" Although a number of different responses came back, indicating this is a difficult question for the VCs to address as well, the responses broke down into these major categories: • 40% said: The founder should step aside and bring in an experienced CEO • 35% said: The founder should ask the venture capitalist for management assistance, or let the venture capitalist recruit a CEO • 15% said: Assemble a board of directors or an advisory board composed of CEO-type individuals • 7% said: Have such a winning business model or great idea, that it outweighs any management team deficiencies • 3% said: Obtain CEO experience before seeking venture capital It seems Venture Capitalists accept no substitute: 75% specified that the founder should hire a CEO, or step aside and have the VC hire a CEO. While assembling an advisory board is a step in the right direction it won't compensate for the lack of a strong CEO. And only a mere 7% would say they would accept a great business concept in lieu of a quality management team.
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