The significance of entrepreneurs as innovators and contributors to wealth creation is widely recognized. Various researchers have explored the process of new firm creation and the supportive role of venture capital investors, which is well understood in the field of entrepreneurship. The rapid growth of firms, driven by venture capital, leads to significant dynamics in young companies. However, the literature often portrays the entrepreneur's role in a static manner, overlooking the phenomenon of founder turnover—when entrepreneurs leave their initial positions. This aspect has received limited attention, with little known about its frequency, causes, and impacts. In this work, Martin Heibel addresses this gap by examining founder turnover in German venture capital-backed start-ups. He develops two unique datasets through an experiment and an online survey, providing in-depth analyses of the antecedents and performance implications of founder turnover. His research integrates perspectives from both venture capitalists and entrepreneurs, offering valuable insights into the interactions between financiers and founders.
