A curated collection of stories, insights, and hard-won lessons about how startup control really works. From equity splits to boardroom shifts.
Some stories are wins, some are pivots, and some are hard lessons. We go beyond pitch decks and headlines to uncover what shapes a startup’s power dynamics: board seats, SHAs, voting rights, founder roles, and everything in between. Because in early-stage startups, control doesn’t live in the cap table, it lives in the fine print
- Sam Altman – OpenAI (2023): In November 2023, OpenAI’s board unexpectedly fired CEO and co-founder Sam Altman, citing concerns over his transparency and leadership style. Despite his significant influence, Altman lacked protective governance provisions. The decision led to internal chaos, with over 700 employees threatening to resign. Within five days, Altman was reinstated as CEO, but without a board seat.
- Vivek Tiwari – Medikabazaar (2025): Vivek Tiwari, founder and CEO of Medikabazaar, was removed from his position by the board, allegedly bypassing the shareholders’ agreement and his employment contract. Tiwari has filed a legal challenge in the Delhi High Court, claiming wrongful termination and coercion by investors.
- Nadav Shoval – OpenWeb (2024): Nadav Shoval, co-founder and CEO of OpenWeb, was ousted following a dispute over a proposed investment from BlackRock. After the board changed his reporting structure, Shoval was dismissed. He contested the decision publicly and legally, alleging an illegal boardroom coup. Eventually, a settlement was reached, and Shoval returned to the company in an advisory role.
- Batuhan Gultakan – Getir (2025): Batuhan Gultakan, CEO of Getir since 2022, was ousted by members of the board, including two sons of the company’s founder. The board was subsequently restructured, and Gultakan returned to his position.
- Emad Mostaque – Stability AI (2024): Emad Mostaque, founder and CEO of Stability AI, resigned from his position amid mounting pressure from investors over alleged mismanagement. Despite the company’s growth, investors pushed for his departure, leading to his resignation and the appointment of new leadership.
- Adam Neumann – WeWork (2019): Adam Neumann resigned as CEO of WeWork amid mounting pressure over governance issues and erratic behaviour. Despite holding majority voting control, investor concerns led to his exit. Neumann received a substantial settlement as part of his departure.
Common Reasons Founders Get Ousted from Their Own Companies
Founders being removed from their own startups is more common than many realise. Several recurring themes emerge from real-world cases and expert analysis:
1. Loss of Board Confidence or Support
- The board of directors holds significant power and can vote to remove a founder, especially if the founder no longer aligns with the company’s needs or the board’s vision.
- As companies grow, founders often become “second” to the board, shareholders, and investors in terms of decision-making authority.
2. Poor Performance or Failing to Meet Milestones
- Founders are expected to deliver on growth targets and strategic milestones. Consistently missing these can erode trust and prompt removal.
- Negative surprises in cash management, such as overspending or misreporting the company’s financial health, are particularly damaging.
3. Inability to Scale with the Company
- Some founders excel at the early, chaotic phase of a startup but struggle with the demands of managing a larger, more complex organisation.
- Skills that are effective in the startup phase may not translate to leading a scaling or mature company.
4. Governance Issues and Power Struggles
- Personality clashes, office politics, and disputes with co-founders or newly hired executives can lead to ousting.
- Sometimes, founders give up too much control (e.g., through equity dilution or board structure), making it easier for others to remove them.
5. Mismanagement or Controversy
- Allegations of misconduct, poor management style, or actions that damage the company’s reputation (e.g., discrimination, harassment, or excessive personal spending) can prompt swift board action.
- High-profile examples include Travis Kalanick (Uber), Steve Jobs (Apple), and Jack Dorsey (Twitter), all removed due to governance or management concerns.
6. Failure to Adapt to Company Culture
- As the company matures, the founder’s informal or unstructured leadership style may become a liability.
- Boards often seek leaders who can professionalize the organization and manage larger teams.
7. Investor Pressure and Changing Ownership
- Major funding rounds or acquisitions can shift control to investors, who may replace founders to protect their investment or pursue a new direction.
- The Flipkart founders, for example, exited after Walmart’s acquisition changed the power dynamics.
8. Burnout or Voluntary Departure
- Founders sometimes step down due to burnout, stress, or a desire to pursue other interests, though this is less about being “ousted” and more about personal choice