UPDATED: 2015 Startup Trend: Startup CEO’s Unemployed and or Behind Bars
UPDATED: May 8, 2015 Johnson & Johnson DePuy Synthes President & CEO Michel Orsinger Arrested At Church and then decided to leave his position
UPDATED April 27, 2015 Former Johnson & Johnson Ethicon Acclarent Indicted Executives Bond Out on $5 Million CEO William (Bill) Facteau & VP of Sales & Marketing Patrick (Pat) Fabian $500,000 charged with 18 counts of fraud.
UPDATED January 13, 2015 And so it begins…Sophia Amoruso Founder and CEO of Nasty Gal steps down.
UPDATED January 19, 2015 Plaxo Cofounder Arrested, Charged With Murder
January 5, 2015
A trend we’ll see in 2015 is a lot of startup CEO’s in the unemployment line; and, probably a few behind bars and both of which have been long overdue. Let’s start with the apps Foursquare (learns what you like and leads you to places you’ll love– yep no design flaw here at all) and Swarm (houses venue check-ins and find-friends features) the brainchildren of CEO Dennis Crowley. Because what’s better than one useless antiquated app? Two apparently was the thinking of Dennis Crowley who somehow managed to raise over $162 million since 2009.
What the fuck are they doing with all of this money? Granted I worked startup medical device and an actual tangible product was produced and sold (very costly) but the amount of money raised is inconsistent and contradictory language to action to what the real numbers are showing and not what the executives are selling to the media.
The failure of these apps rests on the shoulders of Crowley who failed to anticipate the changes in the market and properly adapt to those changes (he didn’t want to hear when people called his baby ugly). Very simply Crowley does not know his customer likely because there really is no customer. And never underestimate the arrogance of startup employee who drinks the company Kool-Aid by the gallon full and blames the user when the user opinion is the only one that counts.
Mr. Stedall may want to revisit what the word objectively means; and, no-no user ever has to stop and think about the countless hours the Foursquare team spent making changes-that’s your job. And if Foursquare talked to users to find out what they really wanted-they could have saved everyone a lot of time and realized that they weren’t (aren’t) compelling products. Startup CEO’s who think they know better than their customers will fail and that arrogance starts at the top and allows employees to feel and become entitled. Foursquare & Swarm are more worried about their “branding’ because they don’t have a viable product and are focused on the image.
It’s time to stick a fork in Foursquare and release the swan song for Swarm (and such a charming name-who doesn’t think of pesky insects flying around and how does that name positively correlate to anything? Oh it doesn’t.) Again, why startups should hire experienced, qualified marketing consultants and not in-house marketing or worse spend multi-millions on a campaign that was forgotten like a squished bug on a windshield.
Even the CEO of Swarm, Dennis Crowley doesn’t like Swarm according to his Twitter bio. The guy tweets his every move which is linked Swarm (Tokyo & Vegas this week alone) and can’t update a bio? That’s certainly inconsistent & contradictory for a CEO who is supposed the marketing both of his companies. Investors are burning money and paying for a lifestyle (image) without any real progress (profits). Predicting a certain CEO will get to see just how much he likes being unemployed sometime this year (and shocked it didn’t happen last).
According to Foursquare COO Jeff Glueck the company had “well over $50 million in the bank” back in October. Big words, tough talk but at some point investors will demand a ROI and once they do get it they’ll swarm in the opposite direction away from Crowley and crew.
The Sociopathic Business Model™ highlights that it’s very easy for startups to become desperate and executives will encourage employees to engage in unethical and or illegal activity in order to show profits. Those employees that object to executive direction will be shown the door (look for high turn-over or executives leaving this year as a possible sign); and, those employees manipulated into engaging in unethical and or illegal activity will be “rewarded.”
PRSpin: The Company is growing
PRSpinUnSpun: People are leaving (either unhappy or terminated)
Smart move from former original Foursquare employee Tristan Walker to leave and start a health and beauty company for people of color: Walker & Company, Inc.
Another interesting and not at all surprising play is from former RadiumOne CEO Gurbaksh “G” Chahal, who on video hit his girlfriend 117 times Aug. 5, 2013 and last year terminated from the company; but, recently made a bid to purchase Radium One. According to Kara Swisher re/code this is how RadiumOne responded:
“While we are obligated to review all offers and will do so at the next board meeting, RadiumOne is not for sale and not with an offer that fails to reflect the value that has been built in the company. With a record second half behind it and the company poised for strong growth in 2015, RadiumOne will continue with its current plans to build an enduring and substantial company under the steady hand of existing leadership.”
It looks like Chahal isn’t used to being challenged and previously preferred to work that way-that is until his own actions cost him his company. Let’s keep in mind Chahal faced 45 felony charges, pled guilty to one count of domestic violence battery , was put on three years of probation and ordered to complete a 52-week domestic violence training program as well as performing 25 hours of community service – the man should be happy he’s not behind bars where he clearly deserves to be so-yep we don’t want him in the business world or political world (where every startup CEO prick thinks they need to go next to “rule the world.”)
I don’t know who Tori is but she just got a new follower/fan
because she forced accountability on Chahal.