👋 Hi there - it’s Egemen. Thanks for reading this edition of Scalable.
Unless you’ve been living under a rock (nothing wrong with that), Paul Graham just shook up the startup world earlier this week with an article he put in his website.
Founder Mode vs Manager Mode.
I’m actually glad somebody finally sparked a fire to start this debate. After observing and hearing about some founders “just winging it” or “barely pushing forward”, a similar theme has been in my mind.
This week, we’re covering the mindset of a typical founder that VCs likely favor - or so as the rumors say.
TLDR: Always think like a bootstrapping founder, I’d advise.
This edition also ended up being one of the LOADED ones, I hope you like it!
Here’s a snapshot of what’s on the menu today:
💡 Spotlight: Ava AI BDR
🧠 Deep-Dive: Founder Mode
🗺️ Method: Understanding How VCs Think - Checklist
⚾️ Catch: VC Valuation in MENA - A Reality Check
☝️ Scaled This Past Week: Cercli (YC S23)
💡 Spotlight: Ava AI BDR
I can’t tell you how extremely bullish I am when it comes to AI virtual assistants, Ava AI BDR is probably one of the best out there by Artisan.
Hire an AI BDR and Save on Headcount
Outbound requires hours of manual work.
Hire Ava who automates your entire outbound demand generation process, including:
Intent-Driven Lead Discovery
High Quality Emails with Waterfall Personalization
Follow-Up Management
Let your reps focus on closing deals instead of writing emails.
🧠 Deep-Dive: Founder Mode
Paul Graham published a short read last week called Founder mode from his website - and it kinda shook the startup world.
I wanted to touch on this in case you missed it. Here’s the link to the full article.
Founder mode is a way of running a company—the way a founder would run it.
Sounds intuitive, right? Well, not really. Here’s Paul Graham’s take:
Overview
Two ways to run a company: founder mode and manager mode
Manager mode is well-known, taught in business schools
Founder mode is less understood, but potentially more effective
Characteristics of founder mode:
Breaks the principle of CEO engaging only with direct reports
May involve "skip-level" meetings as the norm
Allows for more direct involvement across the organization
Example: Steve Jobs' annual retreat with 100 most important people at Apple
Characteristics of manager mode:
Treats parts of the org chart as black boxes
Avoids "micromanaging", prioritizes getting out of the way to systemize
Often described as "hire good people and give them room to do their jobs"
Can lead to hiring "professional fakers" who may damage the company
Here’s my favorite meme from this whole thing so far:
Founders often feel "gaslit" when told to run companies like managers. VCs without founding experience may not understand how founders should run companies. C-level executives can be skilled at "managing up”.
Future of founder mode:
Currently not well-documented or understood
May vary from company to company and change over time
Could lead to better company performance
Some successful founders may already be practicing aspects of it
Founder mode will become better understood and documented
It will be more complicated but more effective than manager mode
Some founders previously seen as eccentric may be vindicated
The concept may be misused by those unable to delegate or non-founders trying to act like founders
According to “Unicorn Founder DNA” by Defiance Capital, the optimal founder motivation is as follows:
No Plan B: Founders often came from high-stakes environments, leading them to embrace risk and develop a growth mindset.
Chip on the Shoulder: Many felt unfairly treated or limited in their native environments, motivating them to succeed.
Unlimited Self-Belief: Strong family role models, high-quality networks, and a deep belief in their mission drive unicorn founders.
Immigrant founders are the most dominant archetype.
This below is an amazing talk / podcast with Christian Dorffer.
Listen to it in the background. 😉
🤔 What’s your mode btw?
Do you agree with Paul?
What do you think of what Christian says?
Do you think there is a middle-ground here?
I simply think the key is to silence all the noise and focus on what works and what doesn’t for you and your team. The rest is probably too theoretical.
Reply to this email, let’s chat!
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🗺️ Method: Understanding How VCs Think - Checklist
I put together this quick checklist, "Understanding How VCs Think," to help founders get inside the mind of venture capitalists:
How VC firms are structured and make money (the famous 2-20 rule).
Common investment scenarios and why VCs need those unicorns to hit big returns.
Key risks VCs watch out for, like market and execution risks.
My favorite part: the 5 T’s (Team, TAM, Technology, Traction, Trenches) that VCs focus on when evaluating startups.
It's basically a cheat sheet to prep you for any conversation that might come your way. I hope it comes in handy - it’s yours!
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⚾️ Catch: VC Valuation in MENA - A Reality Check
I’ve come across a gem of a report earlier this week by Jada Fund of Funds.
MENA’s entrepreneurial and startup ecosystem started slowly a decade ago, passed a crucial inflection point five years ago, and is quickly reaching critical mass.
I actually do not want to give too much away about this report, it’s quite packed with a lot of research and effort spent into this - I recommend you read it if MENA region is exciting to you.
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☝️ Scaled This Past Week: Cercli (YC S23)
Cercli (YC S23) recently raised $4M in their Seed round, it’s the scale of the week!
This round was closed by Afore Capital, COTU Ventures, Y Combinator, Rebel Fund.
With that, Cercli is now building the single modern platform for MENA businesses, to hire, manage and pay your entire workforce - reducing human error and staying fully compliant. 🚀
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