Jason M. LemkinCEO, SaaStr · Co-Founder of SaaStr AI, SaaStr Fund, Adobe Sign

Founder Entitlement and Unethical Practices A Damaging Blow to VC Relationships

4 Apr 2024 · 1 min

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0:35

Excerpt from a YouTube conversation (Jason M. Lemkin, April 4, 2024) criticizing founder behavior toward venture capitalists—arguing that many founders became entitled and unethical (notably in 2021), abused investors and employees by taking large sums (mentions $140M taken, $120M needed by a company), and that such actions damaged companies and stakeholder relationships.

Questions this video answers

2021

$140 million

$120 million

Jason M. Lemkin

Chapters

Founders became very arrogant toward VCs, views them as fungible, put them on irresponsible schedules, didn't share proper diligence, abused the system and they took advantage of the time. And a low point for founder behavior was 2021. I think founders became too entitled. It was abusive toward VCs. It was abusive. I'll take 140 million out for myself FU VCs. I think it's abusive and I know and that's why what Hoppin did was unethical. It damaged the company. That company needs that 120 million. It was ripping people off. You ripped off your investors. You probably ripped off your employees and it wasn't good for the customers. That's why it's wrong.
Fastest growing company in Europe, the darling of European tech on the front page of everything he's got. Whatever, 49, 50% of the company and.
Investors are.
Battering down your door begging you to take their money. Begging you, not you forcing it on them.