Wed Sep 25 09:18:36 UTC 2024: ## Startup Founder Misconduct: A Warning for Employees
**By Jason Lemkin**
While many CEOs are ethical, a concerning trend has emerged in the startup world: founders improperly taking money from their companies. This can range from claiming questionable expenses to taking unauthorized salaries.
According to venture capitalist Jason Lemkin, such actions are more common than many believe, particularly in startups where large VC funding and lax oversight have created opportunities for abuse.
While small amounts may seem insignificant, Lemkin emphasizes that any instance of a founder taking money inappropriately raises serious red flags.
**Here’s what employees should do:**
* **Quietly Move On:** If you witness such misconduct, it’s best to find a new job. The company is likely facing bigger problems than just the founder’s financial misdeeds.
* **Report to Finance:** If you work in finance, report the issue to the board.
* **Report to Board:** If the fraud is significant, even if you’re not in finance, report it to the board.
Lemkin stresses that while small amounts might seem inconsequential, they are indicative of deeper issues. A founder who is willing to steal, even on a small scale, is not someone you want to work for.
First Piper 