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When you meet a new startup founder, it can be easy to compare them to someone like Brian Chesky, the co-founder of Airbnb. But here’s the thing: that's a mistake. According to Sam Altman, you will be disappointed 100% of the time if you expect a first-time founder to be a Chesky-level leader from day one. Instead, what investors should really focus on is the rate of improvement of the founder.
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Why It’s All About the Growth Rate
Altman’s advice is simple but often overlooked: just like you look at a startup’s growth rate, you should pay close attention to how quickly the founder is growing and improving. In fact, this can be more important than how fast the company itself is growing. It’s about recognizing potential over perfection.
Think about it—humans often underestimate exponential growth. We don’t always realize how much someone can improve in a short time, but if you pay attention, you can spot those who are on a fast-learning trajectory. These founders might not be at Chesky’s level yet, but they’re heading in that direction, and that’s what truly matters.
The YC Experience
Altman, who has seen countless founders go through Y Combinator (YC), mentions that during the 10-week program, you can often tell which founders are improving rapidly. Some founders transform so quickly that it becomes clear they will become incredible leaders down the line. It's a rare but valuable skill to recognize those who are on the path to greatness early on.
Real-Life Examples: Lesser-Known but Successful Founders
It’s easy to talk about founders like Elon Musk or Brian Chesky, but what about the lesser-known names? Let’s take Ben Silbermann, the co-founder of Pinterest. Early on, Pinterest wasn’t the massive success we know today. In fact, it took years of learning, tweaking, and improving for Silbermann and his team to find the right product-market fit. Silbermann didn’t explode onto the scene, but his steady improvement as a founder helped turn Pinterest into a household name.
Another example is Patrick and John Collison, the co-founders of Stripe. Today, Stripe powers billions of dollars in online payments, but the Collison brothers didn’t start off as Silicon Valley superstars. They grew into their roles as leaders and developed Stripe’s vision as they learned from early challenges. Their story shows how founders can evolve quickly, even if they aren’t immediately at the level of a Chesky or Musk.
Why This Matters for Investors
If you're investing in startups, the ability to spot high-growth founders is key. You might not meet the next Airbnb co-founder right away, but if you pay attention to a founder’s personal development, you can back someone who will eventually get there. As Altman says, this is something he’s seen about ten times in his career—and each time, it’s paid off big. The "rate of improvement" metric isn’t just a gut feeling; it’s a powerful predictor of long-term success.
So the next time you meet a new founder, don’t write them off because they don’t seem like the next Steve Jobs. Instead, ask yourself: how fast are they learning? How quickly are they improving? That’s where the real magic happens.
Listen to Sam Altman:
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