From “Me” to “We” – Ego: The Silent Factor in Scaling Founding Teams

In the startup landscape, confidence and ambition, what is often called ego, are essential traits for any founder, but an overly self-centered approach can sometimes hinder collaboration, adaptability, and, ultimately, the growth of the business. European venture capitalists are increasingly focusing on how well founders manage these traits, as it can significantly impact a startup’s ability to scale.

The founder’s ego plays a crucial role in shaping a business’s success or failure, while its perception varies significantly across cultures. In countries like the U.S., ego is often seen positively, associated with bold leadership, confidence, and risk-taking, as demonstrated by entrepreneurial icons. However, unchecked ego can lead to hubris and poor decision-making. In contrast, cultures like Japan and China emphasize humility, collective harmony, and social standing. Here, excessive ego is frowned upon and can damage relationships, while a balanced ego that fosters group cohesion is respected. Similarly, in Germany, the ego is acceptable when tied to competence and expertise, whereas in India and France, the ego is tolerated when it aligns with hierarchy and intellectual engagement.

The Leadership Challenge of Scaling

One of the most significant transitions founders face is moving from hands-on leadership to delegating responsibilities. As Polly Barnes, Operating Partner at EQT Ventures, notes, “After their first big venture round, it’s no longer just about the ‘me’—it’s about the ‘we.’ Founders need to do the opposite of what initially worked for them.” In Europe, this cultural shift can be particularly challenging as many founders are reluctant to relinquish control. However, failure to delegate and share responsibilities can create bottlenecks, stifling innovation and slowing growth.

Impact on Collaboration and Decision-Making

Collaboration is the cornerstone of any successful startup, but unchecked egos can lead to personal agendas taking precedence over collective goals. Leaders who exhibit empathy and practice authentic leadership are more likely to build trust within their teams, fostering psychological safety, which is essential for innovation. However, founders with inflated egos often resist feedback, making it harder for their companies to pivot when necessary.

Venture capital firms are increasingly turning to specialized leadership development firms that utilize scientific, data-driven assessment models (like Reflector 360 to assess an employee’s skills – vision, integrity, judgment…  through multi-source feedback to guide their development). These firms gather key data points to evaluate how a founder’s personality and decision-making style may influence business performance and their ability to drive sustainable growth. Leveraging AI and predictive analytics, these tools provide insights into a founder’s adaptability and resilience, enabling investors to better forecast long-term potential and alignment with strategic objectives.

Ego and Leadership Dynamics

Ego can also interfere with effective delegation. Founders who are unable to delegate or trust their team members often find themselves overwhelmed, which can lead to poor decision-making and stagnation. While confidence is necessary for leadership, unchecked ego can lead to discord within the founding team. As Clément Michel, founding Partner of Archiipel, stresses, “Founders must be willing to relinquish full control, delegate, and trust others if they want their business to grow beyond their individual capacity.”

The Impact on Company Culture

Unchecked ego can lead to toxic work environments where individual achievements are prioritized over team success. On the contrary, companies that cultivate humility, transparency, and collaboration tend to retain top talent and innovate more effectively. These organizations emphasize team success over individual recognition, which helps create a more sustainable environment for long-term growth. As Anna Ott from HV Capital points out, “Self-awareness is key to strong leadership, and founders who embrace this are more likely to build resilient teams.”

While confidence and ambition are essential to a founder’s success, unchecked ego can become a significant obstacle to collaboration and growth. Investors are increasingly focusing on how well founders manage their egos within their teams. By addressing ego-driven challenges early, founders can create stronger, more adaptable teams and build a foundation for sustainable success.