Fresh off a public spat between Uber investor Benchmark Capital and former Uber CEO Travis Kalanick, Benchmark general partner Bill Gurley took the stage in front of a large room of bankerfolk at the Goldman Sachs Internet and Technology Conference to talk about how startup boardrooms are now filled with a lot of cheerleaders that aren’t holding founders accountable.
“There’s a systematic problem in Silicon Valley, the venture capitalist board members are finding harder and harder to speak up and hold entrepreneurs responsible for financial performance,” Gurley said. “Our business has gotten super competitive. What the venture capitals is afraid of is losing the next big one. If they get a reputation — years ago [some of the best venture capitalists] were known for storming into board rooms [to demand fiduciary responsibility] — if you get a reputation like that you won’t win the next deal.”
He then went on to say that “Silicon Valley board rooms have mostly become,” and then clapped his hands a few times to imply it was largely people applauding founders and giving them a lot of leeway. This isn’t hugely surprising given a very big tiff between Benchmark and Uber that essentially led to the ouster of Kalanick. Following a wave of cultural problems, as well as a major lawsuit between Uber and Waymo over the acquisition of Otto (which settled last week[1], shortly after Kalanick gave his testimony[2]), Benchmark sued Kalanick[3].
Uber CEO Travis Kalanick attends the summer World Economic Forum in Tianjin, China, June 26, 2016. REUTERS/Shu Zhang
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