*By Michael Teich*
Travis Kalanick should never have stepped down from Uber.
That's the feeling of Cyrus Massoumi, the co-founder of investment fund Humbition and the founder of Zocdoc, who feels venture capitalists should support the founders of companies they're backing, even if that leader has become a controversial figure.
"Everyone has strengths and development needs. We won’t ask founders to step down," Massoumi said Wednesday in an interview on Cheddar.
"In the case of Uber, we would not have been one of the firms that was pushing Travis to leave."
Kalanick, who founded Uber in 2009, resigned as CEO last summer after serious pressure from investors who were eager for the company to revamp its brand image. The ridesharing firm had been plagued by months of sexual harassment scandals, regulatory scuffles, and legal issues.
Not all leaders have such a dramatic tenure, but Humbition makes a point investing in founder-led companies, and the early-stage investment group is launching a $30 million fund focused on innovative entrepreneurs in the New York City area.
Its portfolio currently includes furniture company Burrow and three other investments that have yet to be announced.
Massoumi said companies reach their full potential when the founders stay in control.
"If you look at all the outcomes and all the greatest innovations ー the glory years of Microsoft ($MSFT), the glory of Apple ($AAPL), the glory years of Google ($GOOGL) have been when the founders are there, because no one is going to care as much as the parent."
Massoumi thinks New York City is the prime location for finding entrepreneurs who are trying to make a positive impact on the world.
That's what he said is the biggest difference between the Big Apple and Silicon Valley.
"The kinds of companies that tend to break out in New York tend to be much stronger from a point of purpose-driven dimension. If you think about the companies that have done quite well here, they're doing interesting things in healthcare, education," Massoumi said.
Humbition's key areas of investment include marketplaces and consumer and health tech. The fund's advisers include the New York-based founders of ClassPass (Payal Kadakia), Warby Parker (Neil Blumenthal), and Compass (Robert Reffkin).
For full interview [click here](https://cheddar.com/videos/why-founder-led-companies-make-for-good-investments).
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
As Big Tech reports Q3 earnings, investors await proof that massive AI and cloud investments from Meta, Apple, Microsoft, and Alphabet are driving real growth.
Eric Trump joins us to discuss American Bitcoin’s mission, market strategy, and why he believes the U.S. must lead the next era of digital currency innovation.
Unreal Snacks CEO Kevin McCarthy shares how dye-free candy is leading the sweets revolution—just in time for what could be a record-breaking Halloween 2025.
