Banking isn’t the only ‘single point of failure’ entrepreneurs should be rethinking

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Silicon Valley Bank is an effective reminder that startups, typically entrenched in the world of threat and scrappiness, typically overlook to consider the plain: single factors of failure. But simply like it is smart to depend on a community-friendly financial institution, so does entrusting a single individual to guide your online business to success. Now that we’ve seen the previous not likely work out, maybe it’s time to rethink the latter.

TechCrunch+ polled quite a few early-stage founders who’re constructing corporations that have raised a Series A or much less, to know how they give thought to succession. The consensus is that it’s not prime of thoughts, and even prime of the listing, in a world the place founders are more centered on runway, product-market match and development.

Can that be modified?

Moving an organization’s success past the person founder or chief executive tasked with being the face of it’s onerous. I imply, there’s a motive that VCs love co-founders: Eighty % of billion-dollar corporations launched since 2005 have had two or more founders, one examine shows. At the same time, co-founder breakups are one of the crucial widespread causes startups fail. Contradictions! We love them.

Banking isn’t the only ‘single point of failure’ entrepreneurs must be rethinking by Natasha Mascarenhas initially revealed on TechCrunch