🆚 Founder Mode vs Manager Mode

👋 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:

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🧠 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

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:

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.

👋 Working on a startup? Here’s how I can help:

📨 Keep in mind - you can also reply to this email, I read every reply.

☝️ 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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