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· Posted on
February 21, 2024

Twitter co-founder Jack Dorsey steps down as CEO

He reckons the company is ready to move on from its founders...and he's ready to move on to Square (and other things).

What's the key learning?

  • Jack Dorsey, the founder of Twitter and payments platform Square, has stepped down from his role as CEO at Twitter
  • Founder-led companies are generally those whose founder is the CEO, president or board member
  • Many investors say founder-led companies have significant benefits...but there's a time and a place for them.

Background: Jack Dorsey is the American tech entrepreneur famous for founding two massive companies: social network platform Twitter and payments platform Square.

What happened: Jacky D's been the CEO of both companies since he founded them...and that's been a bit of a running problem for both companies. Twitter's share price is the same as it was in 2014. Compare that to Google who has 5x'ed since then. Or Facebook, which has 6x'ed.

What else: Now, he's stepped down from his role as CEO at Twitter. He reckons the company is ready to move on from its founders.

So what's the key learning?

💡Founder-led companies are generally those whose founder is the CEO, president or board member (think: Elon Musk with Tesla, Mark Zuckerberg with Meta...or Sarah Blakely with Spanx).

💡Many investors are attracted to founder-led companies because:

  • Founders generally look to the long-term rather than focusing on the next earnings report
  • They have a large chunk of their wealth tied to the company's success, so they've got skin in the game
  • Founders know every last detail of the biz, 'cos they were once the head of marketing...sales...product...ya get the gist.

💡But it's fair to say the founder (Jacky D), who's also the founder of another business (Square) is probs not the right person for the job. So now, Jack can pursue other projects like Square, crypto...and probably the metaverse.

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