From David Neeleman to Jerry Yang to Mike Lazaridis, many founders don't make the cut as CEOs for their company. Of course, there are many successful ones too, including Mark Zuckerberg, Jeff Bezos, and Larry Ellison. The difference may come down to how well founders demonstrate the core principles of leadership.

Founders often consider their companies as their own child because of their attachment to it. Due to this reason, it is very difficult for them to give up control. In fact, most of the founders are shocked when investors ask them to relinquish control, at least to some extent.

When we view things from the investors’ perspective, it is only natural for them to ask founders to leave the CEO position in order to make way for an experienced CEO who can seamlessly handle the day-to-day business processes.

Most investors aren’t keen on investing in companies that are heavily dependent on a single individual. They want to invest in startups that can function just as well with the founders, which is why many investors insist on hiring an external CEO before they confirm their funding.

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