The Invisible Founders: Where Does All This Talent Go?

Every founder embarks on their journey with a vision: to build something groundbreaking, disrupt industries, and perhaps even create the next unicorn.

The ambition is clear, but the road to success is often far more complex than anticipated. The reality? The vast majority of startups never reach profitability, let alone unicorn status (Gompers et al., 2020). In the Nordics, we love to celebrate our unicorn-per-capita statistics, but let’s be honest—this is the exception, not the rule (Gompers et al., 2020).

So, what happens to the rest of us? The ones who grind for five years or a decade, pouring everything into a business, only to watch it fold? Many exit with debts, exhaustion, and an identity crisis (Eisenmann, 2021). After years of being the founder, suddenly, the company is gone, and you're left asking, Who am I now? But the bigger question comes next: What’s next?

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And that’s where things get tough. Founder – Open to Work. 

Open to work as what, exactly? Sure, maybe you started as an engineer, but now you're an expert in your startup—a niche skill set that doesn’t always translate neatly into a corporate job description. And while everyone loves to say, “Founders make great hires,” the reality is a bit more complicated (Wasserman, 2017).

When it comes down to hiring, many companies hesitate. Founders are seen as unpredictable, likely to jump ship for a new venture, unable to follow corporate structures, or prone to side projects (Wasserman, 2017). Hiring managers often pick the safe bet: the candidate who stayed in the corporate lane, not the one who went full startup mode straight out of school or left a stable job to take the plunge.

The result? Many former founders find themselves in limbo, stuck in a brutal job search where their biggest strength—having built something from nothing—is misunderstood or undervalued (Christensen et al., 2018).

Breaking the Founder Stereotype

If you’re in a position to hire, don’t let bias make you miss out on great talent. Former founders bring:

• Relentless problem-solving skills – When you've run a startup, you’ve dealt with crises, pivots, and limited resources daily (Eisenmann, 2021).

• Leadership and execution – Unlike corporate roles where work is divided, founders do it all—strategy, sales, marketing, operations, and more (Wasserman, 2017).

• Intrapreneurial mindset – Founders don’t just follow rules; they find better ways to do things. If nurtured, this can save companies millions (Christensen et al., 2018).

If You’re a Former Founder, Here’s What to Do

• Reframe your narrative. Don’t just say you ran a startup; translate your experience into the language of employers. Highlight your strategic, operational, and leadership skills (Eisenmann, 2021).

• Find companies that value innovation. Not all organizations fear entrepreneurial minds—seek those that encourage internal innovation (Christensen et al., 2018).

• Embrace the transition. It’s tough, but redefining your identity outside of your company is part of the process. Your skills are valuable—you just need to position them correctly (Wasserman, 2017).

• Coach startup founders in the early stage. It will help you boost how much you know and even discover where you are good at. Pay it forward (Eisenmann, 2021).

The startup ecosystem loves to celebrate success stories, but we need to talk more about what happens after failure. Founders don’t just disappear when their companies shut down. They’re an untapped resource, full of experience, creativity, and resilience (Gompers et al., 2020). Companies that recognize this and welcome former founders into their ranks will gain a major competitive advantage (Christensen et al., 2018).

Let the former founder bloom in their next chapter—and maybe, just maybe, be the hero in yours.

Do you have a story that deserves to be featured at Fearless Founders?

We'd love to hear it! Email us at stories@fearlessfounders.site. 🚀🔥

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References

• Christensen, C. M., Ojomo, E., & Dillon, K. (2018). The prosperity paradox: How innovation can lift nations out of poverty. Harper Business.

• Eisenmann, T. (2021). Why startups fail: A new roadmap for entrepreneurial success. Currency.

• Gompers, P., Gornall, W., Kaplan, S. N., & Strebulaev, I. A. (2020). How do venture capitalists make decisions? Journal of Financial Economics, 135(1), 169-190.

• Wasserman, N. (2017). The founder’s dilemmas: Anticipating and avoiding the pitfalls that can sink a startup. Princeton University Press.