How important is a CEO’s profile to the success of a startup?

The fascinating TV dramatisation The Dropout, about US medtech Theranos and its now jailed founder, brought to my mind the role that a CEO’s profile plays in the success of a startup.

We’re often asked by clients about building their CEO’s image: should they do it, why, and how? There’s no definitive answer to whether an organisation should have a high profile leader but, for startups looking for investment, it can make a huge difference.

The Dropout demonstrates the impact that a founder who cultivates a certain image can have. Unfortunately Elizabeth Holmes’s business was an outrageously fraudulent venture, but her carefully curated demeanour and ability to build relationships with strategic supporters were integral to Theranos securing around $724 million in funding and growing to 800 employees.

In our CEO and Corporate Reputation whitepaper, Paul Billingham, director at Knight Corporate Finance, explains how the ability to secure investment is often completely intertwined with the reputation of the CEO. “In many ways the CEO is the most valuable commodity, especially for companies in early investment rounds. Potential investors need to buy into the leader”, he says.

Demonstrating passion, confidence and experience, as well as solid growth plans, are also important beyond the initial investment stage. A founder with these attributes can be a positive face and voice of the organisation. Add an interesting background or approach and you have the ingredients of a strong story for the media. As journalist Michael Dempsey tells us: “journalists want to write about people first, companies second”.

In Holmes’ case, being on the front page of Fortune, Forbes and many more publications, certainly added to the credibility and awareness of the business. Media coverage provides an element of third party endorsement that can reassure investors and demonstrate that the concept behind the business has legs.

However, it might be that the founder’s personality is not ideally suited to talking to the media. Some CEOs prefer the values of their businesses to do the talking rather than the spotlight being on them. While you need a leader who can convey the business story in a compelling way to investors and partners, this does not necessarily have to be done through the media. There are plenty of examples of businesses whose CEO is unknown on a public level.

For startups, a CEO who can attract positive attention for the right reasons is a valuable asset. To what extent the brand is based on a leader’s profile is a fundamental consideration for a business’s marketing and PR strategy. The Dropout highlights the power of charisma and conviction, but investors and the public alike want integrity – without that it’ll all come crashing down.