Losing Top Talent Affects Your Company’s Value
Riddle me this:
Company hires great people. Great people create great product. Insights compound in great people’s heads.
Investors get excited about company’s potential. Great people convince Investors it’s a 1/1 company because of its people. Investors invest at a high valuation.
High valuation rewards great people for building a great product. Great people become super wealthy.
Great people wonder why they’re working for the company when they could start their own company with their amazing insights. Great people leave.
What happens to the value of the company?
Is it OK because it has cash to replace the talent that’s leaving?
Is it inflated because the exiting talent can take their insights and do something that competes with the company?