we still remember the scene in the godfather , Michael corleone be named as the next Don to take over his father in the Mafia family. As the audience, we have a sense of relief, in the end, Don Corleone bless his son would become a reality, Michael Corleone accepted his fate into a gangster. Vc firms develop their successor and old Corleone to cultivate his son is a bit similar.
the fact is such, the number of active vc firms are reduced. Now there are more than 800 active venture capital companies, compared with 2002 in a 1100 several, when many companies coming from the shadow of the economic bubble. The cause of the decline has a lot of, macroscopic and microscopic, but many companies have problems is the lack of power of managers. These companies have not found, cultivate and promote the talent, the future one day, when they take over the company to help them to find the next Google or Facebook .
this company a catch a lot, a lot of companies we have had communication. The company will ensure that their leaders, investors, and reputation, management, and constantly raise money, and how to manage is right.
the national venture capital association, vice President of communications Emily Mendell said: “the succession management is one of the risk investment company one of the most important issue facing the. A company’s reputation is based on their partners and brand building. If some of the time, some people leave or retire, but the company the next wave of management not actively communicate with investors and entrepreneurs, that it may have a large gap, and even difficult to raise a new fund.” She further explained, because without a proper succession management plan in place, many venture capital firms are met in terms of increasing fund money problems.
we sit down and some success for generations prosperous decades of vc company leaders sit together to discuss these problems.
is one of the top Google well-known venture capital firm NEA managing partner, he said: “in the 1978 years created NEA , after he spent seven years in the company, in the 1999 years took over the company, after all, the founder of also participated in the company’s management, they grasp the company’s overall trust, in the board of directors in fact NEA is key factor is to the success of the succession process of seamless transition.
he acknowledged that in the beginning of the founder has ambition to create a 100 in the company. This is not three people come together to form a partnership that simple, it is to create an institution, he needs to exist many decades. Founder did not pitch their name, they just choose a common name, later, increase its brand value through brand operation.
NEA Barris at the helm, he is always trying to leadership to help the younger generation, hope one day can lead the company in the future. He NEA reference Scott Sandell such a talented young people conduct business technology practice, and cultivate in the field of health care investment David Mott , Sonsini business investment, Harry Weller, lead the company on the east coast.
he said: “if you don’t do this, you can’t run a 100 in the company. Such other partners for short-term interests will be easier to manage.”
and NEA partner can inherit the training of talents facing a question of time. Barris said: “now, we have 12 years of cooperation relations, if they don’t, then who will? This is related to their interests. Partner is for the partners and the company success. They hope these partners can participate in multiple funds.”
last year, the NEA raised and $, this is the first and round the wind raise investment gold, and is likely to be the largest in the history of vc.
Kleiner Perkins Caufield & amp; Byers
long-term partner at Kleiner Perkins Ted Schlein says, “succession management is we have to do, but it is very difficult. Inherit the transition is a part of the risk investment company culture. This is must exist, because the company has been in a state of change. The company’s leader, John Doerr will choose your assistant, through the ranks Schlein is joined after the (Doerr joined the company in 1980, Schlein is joined the company in 1996).”
Kleiner reserves of an increase in the depth of talent is in a deal is not only a partner forever. Kleiner do every transaction, there will be a middle-aged colleague and a young colleague, Schlein, said the company believes that venture capital enterprises need to establish a mechanism of the instructor.
part of the talented person is created, he thinks the company has introduced many promising young people, as the former Google employees, Megan Squere product leadership Quinn. After the company also absorbed technical analyst Mary Meeker and EA employees before Bing Gordon.
Schlein think if there is no good young people to wear or colleague rich operating experience, the company will get into trouble.
Doug Leone Sequoia capital ( 1972 by Don risk investment company created) of leadership, he said: “the choice of successor is a very important problem, if you have this idea to build long-term relations of cooperation, VCS want their companies can now run longer.
and Barris views,