I'll never understand this mindset where you start a company, only to turn around a give a VC so much power that they can fire you at any moment.
Some people wear this as a badge of honor. I think it's an inability to negotiate investment terms, and that it defeats the entire purpose of starting a company.
For whatever it's worth, I worked for a company that was backed by Khosla Ventures and I'm 100% sure there was no such "Vinod can fire the CEO whenever he wants" term in the term sheet.
To this day, even after series A through G and an IPO - the CEO and the founding team of that company retains 70% voting power to negate any board/investor influence.
That's how you do it if you want to take VC funding! Clean deals only and retain control the entire time. Don't sign bad deals just to get a famous VC logo on your website.
I’m backed by Vinod. Every founder who raises from Vinod knows the deal.
Could he try to fire you from your own company if he thinks that’s what the company needs?
Yes. That’s not a secret. We even joke about it.
But making this entire drama about “firing founders” misses the point.
The point is that Vinod will always make the call he believes is right for the company, no matter how uncomfortable it is.
And there are 2 sides to that coin.
If he thinks you’re in the way, he’ll move you.
If he believes the company should win and you’re the person to make it win, he’ll move mountains for it. He’ll pull strings, take the hard fights, and push harder than almost any investor would.
The ruthlessness that makes him dangerous is the ruthlessness that makes him exceptional.
That’s the deal with him. Vinod is not founder-first, he’s company-first. And if that makes your uncomfortable, you should probably pitch someone else.