My startup is nearing the end of its runway – and I found out my CEO has been taking money from the company. What should I do?

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JASON LEMKIN

Unfortunately, this is a little more common than you think.

The very best CEOs never “take money from the company” in my experience.

But I’m guessing in at least 5% of venture-backed start-ups, some founder does something wrong here.  Pays himself back for “expenses”.  Takes “a loan”.  Whatever.  There’s some paper justification, but it is stealing.

A few thousand dollars, though if that’s all it is, isn’t material.  You may be wrong.  And small numbers are a wash anyway.  I’m confident as a CEO, I had many tens of thousands of expenses I forgot to expense.  A few nickels don’t matter.

But if it’s true, it’s someone you probably don’t want to work for.

Get on AngelList and find something new.

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Published on September 29, 2015
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