Within expansive corporate structures, a paradox arises regarding how companies manage individuals who have previously founded and led startups. Rather than advancing these entrepreneurial leaders into positions of significant influence, many large firms tend to marginalize them. This dynamic was explored recently by Tobi Lütke, co-founder and CEO of Shopify Inc., during his discussion with David Senra on the "Founders Podcast."
Lütke characterized former founders as possessing a distinctive mindset and behavioral approach that sets them apart within large organizations. These unique qualities, he noted, often conflict with traditional corporate cultures, leading companies to react by "cocooning" such individuals rather than promoting them.
"People who have started companies think and act differently inside large organizations," Lütke remarked. "I feel it's a very special thing," he continued, emphasizing that instead of being embraced, these entrepreneurial figures frequently face institutional resistance. According to Lütke, companies respond by isolating them, effectively relegating them to the "outskirts" rather than integrating them into central decision-making processes.
Such marginalization often results in former founders being assigned to peripheral or experimental units, sometimes referred to as "skunk work" teams. Lütke vividly described these assignments as akin to "day care for people who tell you that your stuff doesn't smell right. And your stuff does smell," illustrating the tension between entrepreneurial candor and corporate conformity.
This phenomenon extends beyond anecdotal observation, illustrating a broader challenge for large companies attempting to absorb entrepreneurial talent acquired through start-up buyouts. Shopify’s own experience provided a case study for Lütke, particularly during the pandemic period when the company actively acquired several startups, including logistics firm Deliverr and influencer marketing company Dovetale in 2022, followed by workplace messaging platform Threads in 2024.
Recognizing that former founders were at risk of being sidelined, Lütke opposed the prevailing practice of isolating these individuals. Instead, he championed initiatives to elevate these leaders within Shopify’s organizational hierarchy. Notably, he created a dedicated Slack channel specifically for founders from acquired companies, fostering ongoing communication and engagement. He frequently solicits their input and involves them in strategic discussions, sometimes placing them above other managerial staff to ensure their influence remains substantial rather than symbolic.
Lütke disclosed that founders of both Dovetale and Threads maintain active product roles within Shopify. Although Deliverr's CEO departed roughly a year after acquisition, the overall approach at Shopify signals an intention to harness entrepreneurial expertise rather than suppress it.
This approach is echoed in other technology companies confronting similar integration challenges. For example, Nvidia recently entered a non-exclusive licensing agreement with AI chip startup Groq. Importantly, Groq’s founder and CEO Jonathan Ross joined Nvidia to assist with the development and scaling of the licensed AI technology, indicating a strategic inclusion of entrepreneurial leadership in core business directions.
At OpenAI, Barret Zoph, an AI researcher with extensive experience, was appointed to lead the firm’s enterprise expansion efforts, further demonstrating how companies are selectively leveraging founder expertise to advance critical initiatives.
Lütke articulated a practical heuristic for identifying employees capable of effective crisis management: inquiring whether they have prior experience founding a company. This question reflects the belief that entrepreneurial leadership cultivates skills and perspectives valuable during turbulent business moments.
The broader implications of Lütke’s commentary reveal an ongoing tension between corporate tradition and entrepreneurial agility. While founders may offer innovative insights and risk-tolerant mentality, existing power structures within large companies may resist such influence, perceiving it as disruptive. Despite this, efforts at Shopify and elsewhere show that intentional integration of former founders into leadership roles can enhance organizational dynamism.