As their companies grow and evolve, many startup founders find it beneficial to step into different roles, leaving the helm to others with more experience in handling large-scale operations, IPOs, or global expansion.

Several startup founders have recently chosen to step out of their CEO roles as their companies grow in size and complexity. Among them are Sarosh Waghmar, founder of Spotnana, Johannes Koeppel, founder of WeTravel, and James Dixon, CEO of Visit Group. These founders have transitioned into new roles, such as chief product officer or chief operating officer, allowing individuals with different skill sets to lead their companies.

According to Cara Whitehill, vice president at Thayer Investment Partners, the skills needed to grow a company from a startup to a large-scale operation are vastly different. Some founders thrive in the early stages of a business, enjoying the challenge of building it from the ground up. However, when the company begins to scale, these founders may find their skills better suited to other roles.

One example is RoomPriceGenie, co-founded in 2017 by Ari Andricopoulos, Marvin Speh and Jörg Siegel. After attracting significant funding and securing a $75 million investment from Five Elms Capital, Andricopoulos decided to step aside as CEO to become chief strategy officer. This role change allowed Charles Scarantino, a former successful founder and member of Five Elms’ “CEO-in-waiting” program, to take over the company’s leadership.

Kevin Czok, a venture capitalist and strategic advisor, suggests that mutually agreed-upon transitions, like the one at RoomPriceGenie, are usually preferable. This approach maintains continuity in company culture and vision, preventing potential disruptions that could arise from a sudden change in leadership.

However, the timing of such transitions is crucial. According to Whitehill, the right time for a CEO to move aside is when the CEO or the board believes someone else could be more effective in the role. In some cases, a fresh leader may be called for if the company has stagnated or if the market has changed, requiring a major pivot and a different type of CEO skillset.

In the travel industry, where success often depends on established relationships and a deep understanding of complex markets, a seasoned executive can be an invaluable addition to the startup leadership team. However, Whitehill emphasizes that CEO transitions must be well managed to prevent distractions and unlock new momentum for the business.

In conclusion, startup founders should remain open to evolving their roles as their companies grow. A well-executed transition to a new role can lead to fresh perspectives, new momentum, and continued success for the business.

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