It’s no secret that probably the most thrilling firms are sometimes run by their founders. What’s much less apparent is that the uncommon alternatives to change into CEO—particularly of fast-growing tech firms—are inclined to go to individuals who have been performing like founders all alongside.
Founders typically convey the uncommon mixture of imaginative and prescient, grit, and salesmanship that may take an organization from thought to juggernaut. In consequence, founder-run firms are inclined to dominate the tech house. The truth is, founders stay CEOs at 88% of B2B software program firms at IPO, based on just lately printed SaaStr evaluation of 65 main IPOs on this house.
I keep in mind being very intrigued through the 2017 Uber CEO search, exactly due to this dynamic. For a corporation as thrilling and transformative as Uber, it was fairly uncommon to have an open CEO position. And for that cause, candidates who had been CEOs of a lot bigger income scale firms had been rumored to be contemplating the position, together with CEOs of firms like Basic Electrical and Hewlett Packard. Dara Khosrowshahi was chosen for the position, and it was no accident that he had skilled so carefully with IAC founder, Barry Diller.
I believe most would agree that Khosrowshahi, regardless of having by no means been a founder, has been wonderful at Uber’s helm (and the inventory worth exhibits it). The identical is true of nonfounder CEOs Satya Nadella of Microsoft, Nikesh Arora of Palo Alto Networks, and so many others—like Greg Peters, who rose by the ranks at Netflix and have become co-CEO in 2023.
Present up for the corporate
In early 2024, I began getting calls to interview for CEO roles, together with one at Determine, a fast-growing blockchain and fintech firm. The founder was contemplating transferring into an government chairman position. Instinctively, I knew this was a giant alternative. I had labored for its founder, Mike Cagney, earlier than and my fintech expertise had proven me the large alternatives in fixing capital market inefficiencies with blockchain expertise.
I believe a giant cause why I had these alternatives is that I had been working like a founder slightly than an government for years.
I keep in mind distinctly after I was the VP of finance at SoFi, however was requested to show across the mortgage division. Various folks suggested me towards it: The position was very particular (not each firm has a mortgage division, however each firm has a finance division) and I needed to transfer out of San Francisco to an operations heart far outdoors town. I selected to do it, as a result of that was what the corporate wanted. I optimized for the corporate’s wants slightly than what I believed was the career-optimizing resolution.
Finally, optimizing for the corporate was the career-optimizing resolution too, as I used to be later promoted to chief income officer. Nonetheless, each time I share that anecdote—whether or not speaking with mentees or staff about them making comparable strikes, I’ve been nearly universally rejected. It may be unnatural to optimize for firms. However for a founder, it’s second nature.
Volunteer for alternatives
That lesson got here again once more at Brex, which I joined following SoFi.
Our preliminary public product launch was extremely anticipated internally, as we had labored for over a yr to construct the product, and had been holding our $50 million in capital raises in stealth. Three months earlier than the scheduled launch, we unexpectedly misplaced our advertising and marketing head. I knew nothing about advertising and marketing on the time, however I had witnessed SoFi’s advertising and marketing success firsthand.
I used to be the CFO, however I knew we needed to have a advertising and marketing launch, so I stepped up, providing to run advertising and marketing and the launch. This was a excessive stakes launch, and I had no expertise. It was robust, with a variety of ups and downs. However finally it was not solely massively rewarding for me, but additionally a really profitable advertising and marketing launch.
In wanting again at my experiences, and of individuals I like, there are a number of widespread themes:
Optimize for the corporate, not your resume.
A founder mentality does what must be completed for the corporate’s success, whereas an government mentality can view it as presenting extra draw back than upside.
The very best alternatives don’t contain functions
Slightly, they’re created by those that suppose and act like founders lengthy earlier than they’re given the CEO title. They nearly all the time come from inside organizations or through referral.
Get snug with being uncomfortable.
Whether or not it’s moving into unchartered territory or taking up that position that appears like a headache—it would simply be your greatest transfer but.
The very best CEO jobs could appear unavailable or out of attain, however should you act like a founder at present, you would possibly simply be requested to fill one tomorrow.
Michael Tannenbaum is CEO of Determine.
