Abstract
<jats:p>This chapter analyses leadership dynamics in startups, focusing on the contrast between the founder mode, often associated with transformational leadership, and the managerial approach, typically aligned with transactional leadership. It begins with a historical overview of the term ‘startup’ and the evolution of innovation-driven ecosystems, from Silicon Valley's early days to contemporary global contexts. The discussion highlights how founders tend to inspire through vision, creativity, and cultural shaping, while managers emphasise structure, processes, and operational efficiency – two complementary yet sometimes conflicting forces within high-growth companies. The chapter uses two case studies to illustrate these dynamics. Airbnb exemplifies a founder-led organisation that successfully scaled while retaining much of its entrepreneurial spirit, balancing creativity with structured management to achieve sustainable growth. In contrast, the Theranos case illustrates how founder-centric leadership, when unchecked and lacking transparency, can lead to organisational failure despite initial innovation potential. These examples underscore the importance of balancing visionary drive with operational discipline, particularly in environments characterised by resource constraints, high uncertainty, and rapid market changes. By integrating theoretical insights with real-world cases, the chapter provides a nuanced understanding of how different leadership modes influence startup trajectories, offering practical implications for entrepreneurs, investors, and managers navigating the complex life cycle of new ventures.</jats:p>