Why Founders Feel Fraudulent as They Grow
As founders navigate the early stages of building a company, they often thrive on the energy, creativity, and sheer determination required to get a business off the ground. However, as the company begins to grow, many founders find themselves facing an unexpected and unsettling experience: a creeping sense of inadequacy and self-doubt, commonly known as imposter syndrome.
This feeling of being out of one’s depth often strikes during periods of significant growth when the explicit and implicit responsibilities and expectations placed on a founder increase dramatically. Despite founding the business, beating the odds to scale, and achieving notable successes, many founders feel as though they are frauds, unworthy of the position they hold and fearful of being “found out” at any moment.
This experience is characterised by persistent self-doubt and a belief that one’s success is down to blag, luck, timing, or external factors rather than personal ability or competence. In my experience, you feel that sooner or later someone wiser and more experienced than you will see straight through your facade. These moments always remind me of the time my wife and I left the post-natal ward with our daughter for the first time, convinced that at any moment, someone would tap us on the shoulder and ask what we thought we were doing.
For many founders, these feelings only intensify as the company grows, marking the moment — or more specifically, a series of moments — when the skills required to lead a small, scrappy startup need to be superseded by those needed to manage a rapidly scaling business.
In the early days of a startup, founders are deeply involved in every aspect of the business. They have a hands-on role in operations, product development, marketing, and even customer service. They know the business inside out and rely heavily on their instincts and passion to drive it forward. Everyone knows everyone else; getting things done is often a matter of a Zoom call or leaning across the desk. But as the company scales and the dynamics of the organisation begin to shift, so too does the role of the founder. They must now navigate the need to maintain momentum in day-to-day operations while stepping back to focus on strategy, leadership, and building longer-term foundations.
This transition can be uncomfortable and disorienting. Suddenly, founders are leading larger teams, making high-stakes decisions, and navigating areas of the business where they may lack expertise. They feel responsible not only for business performance but also for the livelihoods of those who have committed themselves to the business and even the broader network of dependents these individuals support. I often associate these moments with free-climbing — where halfway up, it may be as perilous to go down as it appears to continue climbing. Couple this sense of responsibility with the very real increase in the complexity of their roles, and it is hardly surprising that one may start to question their competence, feel unqualified, and even overwhelmed.
Hypergrowth and the heightened pressure of raising capital and managing investor relationships only add to this burden. As the stakes increase, founders are thrust into new and unfamiliar territory. They may find themselves negotiating with high-profile investors, managing large sums of money, and being held accountable for growth targets that seem ever more difficult to reach. Founders are expected to take on new responsibilities and make decisions in areas they may not fully understand. This can lead to feelings of fraudulence, particularly when the stakes are high.
The result can be a vicious cycle: the more successful the company becomes, the more the founder feels exposed. Despite external validation in the form of funding, top- and bottom-line success, raving (in a good way) clients, or media attention, internally, many founders feel they are simply not good enough to maintain the success they have achieved. Ironically, the more people rave, the more these feelings may grow.
So what might you do?
One of the most important steps is to ensure that founders are supported by a network of peers, advisors, or mentors who understand these dynamics. Spaces where they can openly explore these challenges — such as founder networks, coaching groups, or industry roundtables — allow them to process their experiences, make sense of the pressures they face, and gain valuable insights from others who have been through similar transitions.
Recognising these feelings as a psychological defence mechanism rather than a reflection of reality is key. Founders should take an objective look at their strengths, development areas, and gaps where others may need to step in. Some skills may be worth developing, while others might be best delegated. Importantly, founders should ask themselves what role they are best placed to take on — because not every founder needs to become the CEO. In some cases, stepping into a different leadership role, such as Chief Product Officer or Executive Chair, might better align with their strengths and the company’s needs.
A strong leadership team is critical to reducing the burden on founders and ensuring the company scales effectively. Many founders struggle with perfectionism, believing they must know everything and have all the answers. However, leadership is not about being the smartest person in the room — it’s about surrounding yourself with the right people and creating an environment where the team can work together to find solutions.
Nurturing a group of individuals who can share the burden to the scaling business with you is both important and can be surprisingly rewarding. This may include bringing in a few new experienced heads, although I am increasingly drawn to the power of developing from within — either way this can allow the founder to focus on the areas where they add the most value. It also ensures that decisions are being made by those who are closest to the coalface. This shift from being the ‘doer’ to being the ‘enabler’ is a fundamental transition that many founders find challenging but ultimately liberating. It is also critical in ensuring that you don’t become trapped in the very thing you have built.
It’s easy for founders to focus on what still needs to be done rather than acknowledging how far they’ve come. Taking the time to celebrate small wins along the way can help reinforce a sense of achievement and competence. Reframing success as a collective effort rather than a personal achievement can also alleviate the pressure to be perfect.
Imposter syndrome may be a common experience for founders, especially as their businesses grow and their roles evolve, but it doesn’t have to hold them back. By acknowledging the reality of these feelings and implementing strategies to manage them, founders can find renewed confidence and perhaps see these feelings in part for what they are a sign the business is pushing into unchartered territory that often characterises growth.
