Founder Arrogance After VC Funding: A Critical Insight

Neeraj Sabharwal
3 min readApr 26, 2024

In the startup ecosystem, the transition from the early, scrappy days of bootstrapping to securing venture capital (VC) funding marks a significant milestone.

Initially, founders often find themselves in a humble position, fervently pitching their vision to anyone who will listen, tirelessly working to attract top talent often with the promise of being part of something big rather than immediate financial rewards.

Yet, an intriguing shift often occurs post-funding: a surge of founder arrogance.

Why does this transformation happen, and what are its implications for the company and its culture?

From Humility to Hubris

The Struggle Before the Storm

In the beginning, founders typically exhibit traits of humility and eagerness. They are in a vulnerable position, relying on their passion, resilience, and the strength of their idea to gain support.

This phase is characterized by founders begging for money from investors, understaffed teams stretching thin to cover multiple roles, and a continuous battle to attract top-tier talent without the lure of competitive salaries.

The Turning Point

The moment VC funding hits the company’s bank account, the dynamic often shifts. Suddenly, the once under-resourced startup is flush with cash, poised for rapid growth. This influx of capital…

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Neeraj Sabharwal
Neeraj Sabharwal

Written by Neeraj Sabharwal

Passionate about helping founders on their sales challenges. Technical background and now running sales.

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