Mark MacLeod argues that a strong founder personal brand becomes a liability during acquisition talks. VCs worry it slows growth and complicates the handoff. At Moz, he spent $60,000 in legal fees navigating the tension between his brand and the company's sale.
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I think if you were to talk to the company's board of directors, let's say, you know, just before it sold, I think they would say that on the whole it was a net negative. As a venture capitalist, right, you need to achieve a certain kind of breakaway growth rate. And I think that personal brands, especially when they have the risk of becoming disconnected from the company, carry a lot of challenges and problems that a brand struggles to overcome when a well-known founder or well-known CEO steps away from the brand or is asked to step away from the brand. When that disconnect happens, it gets messy in the minds of people who know the company and brand, and there can be conflict between those two entities. I think I was sort of nudged to leave Moz about 18 months before I actually did, and those 18 months were a process that involved almost $60,000 in legal fees just on my end personally.