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This morning, the Fortune Term Sheet newsletter (by Allie Garfinkle) asked the question on everyone’s mind: What is founder mode, anyway? M13 Partner & Head of People Matt Hoffman weighed in on the trending term, alongside The House Fund’s Jeremy Fiance and Superhuman’s Rahul Vohra ⬇️

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Partner & Head of Talent @ M13

I was recently asked by Allie Garfinkle and Fortune for some thoughts on "Founder Mode", currently the meme du jour in VC world. Since it's actually something I am talking to more than a few founders about at the moment, I thought I'd expand my thoughts in a bit more longform format: Founder mode is a great concept in theory and I can certainly understand why it’s tantalizing to founders who traditionally already have had difficulty letting go of areas of their business. And of course the idea that founders should stay very closely involved in key product and customer decisions has always been true. But in practice, especially as companies scale, it can become challenging and problematic for almost all but the most focused and disciplined founders to be in the weeds on every single business decision. So making sure there is clear focus on where they are digging in is critical. Otherwise the founder becomes a significant roadblock to speed and efficiency. More importantly, every investor will tell you that the key to scaling a business is by hiring exceptional talent that can level up the founder, and these leaders typically will have more experience and expertise in their areas than the founder does. A founder who substitutes their judgment for that of their executives on a regular basis risks is almost certainly likely to demoralize and demotivate their team, likely to create even broader lack of engagement and turnover. At M13 we've actually done our own internal research on what makes founders great and we've found that the best founders are curious and coachable; so finding ways to balance your passion with the willingness to listen to people who may be smarter then you is a key component of long term founder success, and the best leaders and teams bring a diversity of experiences and perspectives to the table in a way that lets everyone leverage each others' strengths. And as my partner Anna Barber has smartly pointed out, there have actually been many books and studies already written about founder mode - in Jim Collins' book Good to Great he demonstrates that leaders with a cult of personality often leave their companies weaker because the companies become too reliant on one person rather than building institutional resilience. So ultimately while I believe in the core of the concept behind Founder Mode, I’d argue it needs to be applied thoughtfully and not be used as a license to founders to diminish their teams and micromanage at scale. Like all great ideas there needs to be a healthy balance in the execution. The best founders already know this and act accordingly, and the best investors and teams know this too and support their founders to achieve this. Whether you are a founder, an operator, or investor, how are you approaching the new mindset of Founder mode?

Sixth Street invested $125 million with an all-star roster to launch Bay FC women’s soccer team—and the team just sold out its first home game

Sixth Street invested $125 million with an all-star roster to launch Bay FC women’s soccer team—and the team just sold out its first home game

fortune.com

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