Founder Mode: Why SportsTech Founders Should Stay in the Driver’s Seat?

Founder Mode: Why SportsTech Founders Should Stay in the Driver’s Seat?

Lately, the hottest phrase buzzing around Silicon Valley is Founder Mode. Paul Graham, the famous Y Combinator founder, recently sparked this discussion with an article challenging the conventional wisdom that founders should step back as their companies grow. Instead, founders should stay involved, he argues, embracing a hands-on leadership style that keeps their vision alive through every stage of growth.

This hit home for me, as I faced a similar dilemma during my journey with HYPE.

Five years ago today, HYPE was approaching its fifth anniversary. We were gaining serious traction, but some board members pushed for a change, suggesting I step down as CEO and let someone more seasoned take over – a “professional manager”. The thinking was familiar, and at face value seems sound: founders are great for the early years, but to scale a company, you need someone with more traditional management experience. Examples that often piggyback on this train include Google’s founders, Larry Page and Sergey Brin, bringing in Eric Schmidt, an American businessman and former software engineer who served as the CEO of Google from 2001 to 2011 and as the company’s executive chairman from 2011 to 2015.

The idea of stepping down felt wrong. HYPE was my creation – I had invested my entire self into it, my DNA was synonymous with the company’s ethos. I believed my vision and hands-on leadership were still crucial to our success. This led to some tough decisions, including a co-founder leaving and restructuring the board. But I trusted my instincts, continued in Founder mode, and I’m glad I did. As HYPE approaches its 10th anniversary, I can confidently say that staying in the driver’s seat was the right choice.

Graham’s idea of Founder Mode makes it clear why. He explains that founders bring a unique energy and connection to their companies that professional managers often can’t replicate. Even worse can be managers who don’t directly resonate with the company. Stepping back into “manager mode,” where CEOs delegate and detach, can lead to a disconnect between the company’s core mission and its day-to-day operations.

The Importance of Founder Mode

Graham highlights that founders are best positioned to lead their companies even as they scale. While conventional wisdom tells us to “hire good people and let them do their jobs,” this approach should be taken with a silver lining, as it can harm a company when founders disengage too early. We simply operate differently, founders remain deeply connected to every aspect of the company and steer the business based on instinct and vision.

This was exactly my experience at HYPE. Staying involved wasn’t about micromanaging; it was about ensuring that the company stayed true to its mission. As the company grew, I made it a point to stay hands-on with major decisions and maintain direct connections with the team. This approach kept the company agile, innovative, and aligned with its core values.

Avoiding the Trap of Gaslighting

Many founders feel pressured to step aside in favor of experienced managers. This is what Paul Graham refers to as “gaslighting.” While this may hold some merit, it isn’t a golden rule, but I felt that same pressure and the message was clear: a professional manager would scale HYPE faster and more efficiently. But deep down, I knew that stepping aside would mean losing the very thing that made HYPE successful in the first place – its founder’s vision.

Brian Chesky of Airbnb had a similar experience. He initially followed the conventional advice, stepping back to let managers take over. It didn’t work. The company only regained momentum when Chesky re-engaged in Founder Mode, making hands-on decisions that aligned with his original vision. Sometimes, what seems like over-involvement is exactly what the company needs to thrive.

Why Founder Mode is Critical for SportsTech

SportsTech founders face unique challenges. The sports industry is fast-paced, highly competitive, and driven by constant innovation. Whether you’re developing AI-driven performance tools or fan engagement platforms, your vision is your company’s most important asset. Staying in Founder Mode ensures that the company grows without losing its soul.

At HYPE, I’ve seen that founders who remain connected to their vision while scaling are the ones who succeed. Scaling doesn’t mean stepping back. It means evolving as a leader, maintaining a close connection to your product, with a willingness to make bold decisions that others may not understand.

Trust Your Instincts

If you’re a SportsTech founder, or any other founder, feeling the pressure to step aside, ask yourself: Is stepping back really what’s best for the company? More often than not, the answer is no. Sometimes, the best leader for your company is the one who started it.

As Paul Graham wisely put it: “Once we figure out what Founder Mode is, we’ll find that founders were already most of the way there – except that in doing what they did, they were regarded by many as eccentric or worse.”

Trust your instincts, embrace your unique strengths as a founder, and don’t be afraid to stay in the driver’s seat. The future belongs to those who keep their vision alive as their companies grow.

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With love for sports and Innovation,

AR