How do startup founders perceive Silicon Valley’s latest buzz term, ‘founder mode’? The term refers to the entrepreneurs who maintain control of their companies, like Steve Jobs of Apple and Jensen Huang of Nvidia, as compared to those who delegate the majority of their management duties.
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Paul Graham, the founder of the renowned startup accelerator Y Combinator, introduced a new term that has gone viral on social media: “founder mode.”
In a September 1 article, which gained widespread attention on X, Graham distinguishes “founder mode” from the conventional “manager mode” by highlighting critical differences in leadership approaches and organisational dynamics. As of now, Graham’s post on X has garnered over 21 million views.
“Founder mode” refers to a leadership style where the CEO engages with employees at all levels of the organisation, not just their direct reports. Even as the company expands, it remains less hierarchical, allowing the CEO to hold “skip-level” meetings with staff.
Paul Graham provided a real-world example of Steve Jobs, who hosted an annual retreat for the 100 people he deemed most important at Apple, regardless of their rank within the company.
In contrast, “manager mode” is more focused on delegation and involves less direct involvement from the CEO. Graham noted that founders can successfully grow and lead companies without transitioning to the manager mode.
Paul Graham emphasised the importance of hiring competent people and allowing them the space to perform their roles. However, he noted that while this approach sounds ideal in theory, in practice, it often results in hiring individuals who are merely “professional fakers” and end up steering the company toward failure, as reported by many founders.
Since Graham published his essay, social media has been stirring with both humorous and thoughtful interpretations of its meaning.
Critics claim that “founder mode” is just a Silicon Valley way of saying “micromanagement” and that founders often end up bringing on “manager mode” individuals as their second-in-command.
At a recent event, Brian Chesky from Airbnb also discussed how traditional advice on scaling companies—hiring good people and giving them space—failed as Airbnb grew. He realised that this advice, aimed at professional managers, wasn’t suited for founders. Chesky adapted by studying Steve Jobs, leading to significant success.
Many founders at the event shared similar experiences, realising that “manager mode” isn’t effective for founders. Instead, a “founder mode,” where leaders stay deeply involved, seems more successful. While this approach is still not well understood, founders are pioneering its development.
Whether you’re navigating a growing team or looking to maintain control over your vision, this is your chance to explore a groundbreaking mindset that’s challenging traditional “manager mode.”
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