DMEXCO Briefing: Ad tech leaders argue for a balanced approach to ‘Founder Mode’ concept

This isn’t a new debate, but it’s gained fresh traction since Y-Combinator co-founder Paul Graham’s blog post last month. It resonated with execs navigating ad tech’s tricky balancing act of profitability, growth, and keeping restless investors satisfied.

In case you missed it, founder mode encourages founders to trust their instincts and run their companies like they did in the early startup days. This approach demands deep involvement in every aspect of the business, rather than diving into managerial books that preach, “hire good people and let them do their jobs,” as Graham puts it. On the flip side, manager mode is all about delegation and keeping an eye on the big picture.

Graham’s argument is straightforward, if a bit out of left field: he warns founders of successful businesses to be cautious of advice tailored to professional CEOs, whom he describes as “some of the most skillful liars in the world,” people who could “drive the company into the ground.” 

Unsurprisingly, for an industry brimming with egos, this part of the post struck a chord with many. But Graham didn’t stop there; he asserted that “there are things founders can do that managers can’t, and not doing them feels wrong to founders — because it is.” 

That assertion, however, is precisely where ad tech founders have pushed back, insisting that this debate over leadership styles isn’t black and white — it’s a spectrum of grays, each shade telling a different story. Because, of course, nothing screams “I’ve got it all figured out” like running a company solo, as if the weight of the world can be comfortably balanced on one privileged set of shoulders.

“Yes, there’s a degree of micro management that comes with being a founder, especially when the company is young, but as the business develops you have to learn to trust people to do the jobs they’re paid to do,” said James MacDonald, co-founder and chief revenue officer of ad tech business Limelight.inc.

Over his eight years running the company with his business partner, he realized that its chances of success greatly improved when he empowered others to handle what he couldn’t. Now, with 40 employees managing “hundreds of millions of dollars through our platform,” he notes that none of this would have been possible without learning to let go and trust his team.

What he and many other ad tech founders are getting at is that while Graham’s insights ring true — hands-on, visionary founders can build great businesses — it doesn’t mean one causes the other. In the end, it’s about finding the right balance between vision and trust, and navigating that spectrum with care.

“Look at Taboola over there,” said an exec on the sidelines of DMEXCO. “He [Adam Singolda] was very hands-on at the beginning but once the company started to grow he understood very quickly that he had to delegate. Yes, he’s the face of the company, but he also has the right people around him to manage other aspects of the business.”

That kind of foresight is what separates successful leaders. After all, there’s a reason large corporations send high-potential leaders off to business school. Granted, few small businesses can afford those costs or the absence of a founder for long stretches. Then again, the cost of ignorance isn’t cheap either.

“Really this comes down to the mentality of the founder because I’ve worked for a few and the value and passion they bring to their businesses is vital,” said Madi Bachar, vp of global sales for ad tech business MGID. “Sometimes, though, those founders reach a glass ceiling in terms of what they’re able to manage once the company reaches a certain size. They don’t understand that they have to move out of start-up mode.”

Ad tech has claimed many founders who struggled with this very challenge. They refused to step out of that intense mindset to grow their companies, ultimately burning out, losing focus, and creating bottlenecks in their organizations. Now, many have fled the chaos for quieter pastures, whether that’s diving into startups in wellness, turning to consulting, or simply embracing the serene life of hobby farming, far away from the ad tech grind.

But it’s easy to see how they get stuck. 

The industry is, more than many others, in a holding pattern, with many companies waiting to be acquired. The longer they wait, the harder it becomes for founders to keep sight of their original goals, often sidelining them in pursuit of immediate revenue. This fixation on an exit strategy is nearly incompatible with the long-term vision expected of a true leader, said Wilfried Schobeiri as CTO of ad tech business Ogury. 

The irony is thick: while agility is prized in ad tech, some founders cling to control like a toddler to a security blanket, stifling the very innovation they seek by treating their teams like they’re made of glass.

“‘Founder Mode’ encourages a culture of risk-taking, but one of the main challenges for these innovative ad tech ideas to become success stories is the ability to scale,” said Schobeiri. “That’s where it gets tricky, as many founders are not the most effective at scaling a business.”

Overheard at DMEXCO

“Profitability is a big focus for the ad tech sector at the moment.”

“All my clients have downscaled DMEXCO this year; they’re here, to be clear, but without the booths and the big entourages. They’re doing it smaller.”

“I’m meeting the Privacy Sandbox team later to hear what they have to say.”

“It’s the morning of day one and I’m already over DMEXCO.”

“Google’s ad business model is the industry’s most well known secret.”

“You can’t train a vibe.”

“There’s a growing sense in ad tech that privacy can be profitable.” 

“The holding groups are trying to build their own data businesses (again) but that’s going to create some tension with partners like us down the road.”

“I don’t buy the premise of your article that the market is optimistic. It’s anything but from the meetings I’ve had.”

“DMEXCO feels quieter this year, even if it is more international than last year.”

“Google’s ads business won’t get broken up. The worst that will happen is that it will get a big fine.”

“People should attempt to be experts in the things that they legislate.”

“All the chat about Google getting its comeuppance just because all the things people in the industry said would happen have been exposed in this antitrust case. Do you know what that really is? It’s a pyrrhic victory.”

“This place used to be attended by a lot more marketers.”

“Publishers need to understand that, like it or not, they’re in the ad tech business.”

“I need to eat something that isn’t pork-based or comes with potatoes.”

“Look at us, talking about cologne in Koln.”

“For me this year, DMEXCO is about making the most of what’s here. Yes, its not as busy but that means I get to spend more time with the clients who are here.” 

“It’s too late to break up Google now. It should’ve happened a decade ago. Do that now, and another giant, whether it’s Amazon or Meta, will take their place.”

“After the saxophone act at OMClub things got a bit too much so we left.”