By Ade Omotoyinbo
A recent story made headlines in Nigeria: a startup co-founder was publicly removed from the very company he helped build. Media outlets dissected the drama, and social media lit up with reactions—one comment captured the general surprise: “I didn’t know a founder could be kicked out of their own company.”
Most people don’t. But for founders, this is a well-known, if painful, reality. The moment you raise external capital, you’re not just accepting funds—you’re accepting new expectations, shared control, and a potential shift in power. Investors are focused on returns; founders are focused on building for customers. And when those priorities collide, the board decides who stays.
This is the paradox of venture capital: it accelerates growth but comes with strings attached. Not all money is good money. While funding can enable innovation and scale, it can also dilute control and shift the company’s mission. The stories of founders losing their companies—from the U.S. to Africa—are not just cautionary tales; they highlight the importance of alignment between founders and investors.
Before raising capital, founders must ask themselves hard questions: Why am I raising? What changes in governance and decision-making come with this investment? What happens if incentives diverge? And critically, does this investor truly share my vision for serving customers? Because, ultimately, no customer equals no business.
Raising capital isn’t inherently wrong. What’s risky is raising without alignment. Misaligned incentives can shift focus from building value for users to meeting short-term financial goals for investors. Founders must weigh the trade-offs between accelerated growth and maintaining control over their mission.
The lesson is clear: clarity first, alignment next. Everything else follows. Funding should serve the company’s long-term vision, not compromise it.
I’m Ade Omotoyinbo, Co-Founder at AFARI, the AI-powered travel and expense platform designed for African businesses. As we build in public, I share these lessons from the frontline of entrepreneurship—because the best solutions start with founders who still control the vision and stay accountable to their customers.