The Critical Role of Founders at Every Stage
Regular readers of “Lessons” know I’ve often explored the multifaceted role of founders. From the 0-to-1 stage and beyond, founders bring essential skills like vision, leadership, problem-solving, team building, fundraising, strategic decision-making, product innovation, and operational oversight. They establish culture, build brands, attract early customers, and forge key partnerships, driving success at every stage of a company’s journey.
Founders play a vital role in later-stage companies by guiding teams with strong leadership, driving progress through strategic decision-making, and fostering product innovation. They attract top talent, address challenges with innovative customer solutions, and prioritize customer needs through feedback integration. By ensuring operational excellence and aligning efforts toward ambitious goals, founders build a solid foundation for sustainable growth and long-term success.
Founders are defined by their boldness and ability to deliver. They take significant risks to realize the company’s vision, whether building a startup from scratch or driving ambitious goals in mature businesses. Pursuing transformative deals, capturing key markets, and setting audacious objectives are the essence of their role, making them indispensable at any stage of a company’s journey.
The Evolving Role of Founders
Founders in industries like cybersecurity and AI often transition from diverse backgrounds, including established tech companies or military service, bringing deep expertise and valuable networks to drive innovation. Prominent examples include OpenAI, founded by leaders like Sam Altman and Greg Brockman, and Databricks, co-founded by a team including Ali Ghodsi and Matei Zaharia. In cybersecurity, leaders like Anuj Goel of Cyware and Jon Miller of Halcyon exemplify founders who play key operational roles, showcasing their impact across stages of evolving companies and industries.
How VCs Leverage Founders in Later-Stage Companies
VCs value founders for their vision, passion, and deep understanding of the business, making them vital for driving growth and innovation in later-stage companies. Founders act as cultural anchors, preserving core values, while their strategic insights and relationships attract talent, secure partnerships, and strengthen market positions. They also serve as backup leadership in times of CEO transitions or business pivots. While managing founder involvement in mature companies can be challenging, exceptional VCs strategically engage founders to maximize their impact and optimize results.
Founder Buy-In
To fully unlock founders’ potential in later stage companies, they must be fully committed and provided with appropriate circumstances—particularly in terms of compensation and equity packages—that reflect their expertise and keep them motivated. This level of buy-in often requires founders to immerse themselves deeply in another company, which can carry emotional and, at times, psychological challenges.
Conclusion: The Enduring Value of Founders
Founders’ ability to balance vision with execution, take calculated risks, and inspire teams makes them indispensable across all stages of a company’s journey. Whether as builders in 0-to-1 startups, operators in later-stage companies, or strategic assets leveraged by VCs, founders contribute uniquely and powerfully to shaping the trajectory of businesses.
Yet, unlocking the full potential of founders in these roles requires intentionality. From providing the right incentives and support to addressing the emotional challenges of deep buy-in, companies and investors must create environments where founders can thrive. In doing so, they enable founders to deliver on their boldest ambitions—transforming not just businesses, but entire industries.