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Busting Myths About Founder CEO Coaching in VC-Backed Companies

As we were starting to expand our coaching practices, a colleague and I spoke with dozens of CEOs, coaches, and VCs about CEO coaching in startup and growth companies. We were struck by some common myths that persist despite the growing recognition of the value of coaching. 


Myth 1: Coaching is for CEOs who are failing.nbsp;

Reality: Coaching is for CEOs who want to grow and thrive. 


This is the most destructive myth, and it’s just plain wrong. Good startup coaching focuses on helping CEOs grow and learn quickly to realize their potential and succeed in fast-growing companies. This myth is rooted in an even more pernicious myth that leaders are born, not made (see below). 


In some regions, it’s a given that by Series A, a CEO will have a coach (along with other forms of support like advisors and a high-quality independent director). Why would you risk not getting great support and training to grow when the stakes are so high? Sports is a perfect analogy. At the height of his performance, Tom Brady had a throwing coach. 


We all have something to learn and struggle to see ourselves clearly. For first-time CEOs in fast-growing companies, the volume of learning and the need for self-insight and growth are incredibly intense. 


Myth 2: Coaching is therapy by another name.nbsp;

Reality: Coaching is not therapy. 


An unproductive myth for two reasons. First, there is nothing wrong with therapy, so its value shouldn’t be dismissed. Psychotherapists treat mental health issues like depression, anxiety, and bipolar disorder. Many entrepreneurs face these challenges, and nothing is wrong with that. If you’re struggling with a mental health issue, you should get professional help because it’s probably screwing up your life and leadership. 


Second, coaching isn’t therapy. Executive coaching is a well-established professional discipline that helps leaders realize their goals, change behaviors, grow, and learn. Sometimes, lines can be a little blurry, but conflating the two practices is a mistake. They are different and complementary. 


Here are some of the differences between coaching and therapy: 


  • Coaching focuses on creating a positive future. Therapy focuses on treating mental illness. 

  • Coaching is work done by peers playing specific roles (coach and coachee). Therapy has an inherent practitioner/patient power dynamic. 

  • Good leadership coaching is grounded in an understanding of the organizational dynamics that shape leaders. Therapy focuses on the individual and sometimes family. 

  • Coaches and therapists use different techniques to achieve the goals of the two distinct professions. 

  • Coaches often provide instruction on leadership techniques. 


(For more in-depth information about coaching, See Why Leadership Coaching is So Hard to Get Right in VC-Backed Companies.) 


Myth 3: Leaders are born, not made.nbsp;

Reality: Leadership is a learned discipline. 


This myth is relevant because why bother with a coach if leaders are born that way? The myth is rarely stated out loud, but it’s implicit in many conversations. 

The question has been debated for a long time: is leadership an intrinsic capability that some people are born with, or can anyone learn it? The reality is that the whole framing is wrong, especially when it comes to CEOs. 


A quick breakdown. Our genetic makeup shapes our personalities, but only through complex interactions with our life experiences — nature and nurture work together. Second, many different personalities thrive as leaders, especially as founder CEOs. Finally, outstanding leadership is not merely personality; it’s a broad collection of skills, techniques, and behaviors. A great leader builds a repertoire of these competencies and learns to use the ones that fit their style, personality, and the specific conditions they face. 


You can spend a lifetime becoming a more masterful leader.   


Myth 4: Mentors are more important than coaches.

Reality: Both are necessary, and they’re different. 


East Coast VCs love mentors. Most have a ready list of go-to mentors and advisors, which is a good thing. Every startup CEO should cultivate a network of high-quality mentors and advisors. However, mentors serve a different purpose than coaches. 

Good mentors provide specific advice based on their direct professional experiences. This kind of input can be helpful to a CEO when making a decision. For example, if you’re considering making an acquisition, talking to a few mentors who have done so will give you useful perspectives. 


Coaches do something different. Good coaches help you learn, grow, and change how you lead by helping you transform yourself and supporting your rapid learning of new competencies and skills.


Myth 5: VCs shouldn’t recommend coaches.nbsp;

Reality: Intros to great service providers are always helpful.


This myth is rooted in Myths 1 and 3. If you thought coaching was therapy for failing CEOs, you’d be cautious about recommending a coach. You wouldn’t even bother trying to figure out who the good coaches are because the ultimate solution to a struggling CEO is a new CEO. 


On the other hand, if getting a great CEO coach is as routine and vital as having an excellent lawyer, you wouldn’t hesitate to share the names of coaches you’ve seen do good work. The reality is that coaching is a discipline practiced by professional, certified service providers. However, like other professions (perhaps more so than lawyers and CPAs), there is a wide variation in quality, approach, and style, so informed recommendations are helpful. 


Myth 6: The differences between coaches are mystical.

Reality: Coaches are professionals with ascertainable differences.


Because coaching is poorly understood, it gains a kind of mystical quality that makes it difficult to evaluate and compare CEO coaches. The reality is that, like other professionals, CEO coaches vary, which is a good thing because CEOs and executives are not all the same. 


The variations between coaches are understandable, and as a CEO, you can be intentional about choosing a coach who fits you. As an investor or advisor, you can learn to discern the differences, so your recommendations and introductions are useful. (See: The Crux Move When Hiring a CEO or Executive Coach in Startups and Growth Companies


Myth 7: Coaching isn’t worth it.nbsp;

Reality: Nothing will have a more significant impact on your company than the quality of your leadership. 


Great CEO and executive coaching isn’t free. However, well-organized coaching engagements with clear goals can deliver powerful results with a high ROI. At the end of the day, leadership makes or breaks companies, especially as they enter the growth stage and scale. If you’re not making a serious investment in your growth and the growth of your executive team, you are falling behind and selling your company short of its potential. 


To be clear, not all coaches are equal, and not everyone is ready for coaching. You must be curious, motivated, humble, and willing to grow. The coach has to be good at their job and a good fit for you. Talk to any CEO or executive who has worked with a great coach, and you’ll hear how transformative that work has been in their growth as a leader. 


Conclusion

I’m biased. I’m a coach. But I’ve also spent 30 years as an entrepreneur, executive, CEO, and investor working with dozens of successful companies. I discovered the value of great coaching from my experience: failing and succeeding.



Note: Confidentiality and respect for privacy are paramount in my coaching practice. The insights and advice shared in this post are based on my general experiences and knowledge and do not represent the situation of any specific individual or company.

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