Ten + one ways to grievously damage your high-growth tech startup, and Silicon Valley in the process:
1. Only hire, and only train/motivate/incent your managers to hire — don’t optimize efficiency, don’t do performance management, don’t fire.
2. Founders, sell too much of your own personal stock too quickly, alienating your employees and questioning your long-term commitment.
3. Let private stock sales by employees get out of hand: create hit-and-run culture and take on burdens of being public before going public.
4. Dilute the s*** out of cap table: be sloppy and undisciplined w/stock grants to early employees, plant morale land mine for later employees.
5. Maximize absolute valuation of each growth round: make later rounds harder and harder to achieve, until you trigger a disastrous down round.
6. Let non-SV investors suck you into terrible structural terms on growth rounds: guarantee massive trauma if anything goes slightly wrong.