Sid Sijbrandij, Co-founder, Executive Chair and former CEO of GitLab, joined us at our Mountain View headquarters for a fireside chat. GitLab is a widely-used web-based open-core platform for git repositories that he co-founded in 2011. As part of Y Combinator’s Winter 2015 batch, Sid helped shape GitLab’s growth journey, taking the company public on the NASDAQ Global Select Market in 2021. During the discussion, he talked about his journey as a founder, his experience at Y Combinator, and GitLab’s path from private company to IPO.
Here are five takeaways from our discussion.
1. Anticipate market shifts in AI dominance, and be prepared to adapt.
There’s a lot of talk about whether open-source models will eventually overtake the closed-source community. The gap was much wider before, but companies like Meta and Mistral are making waves with their own open-source models. It’s still too early to determine the direction we’re going or who will come out on top, but startup founders should closely monitor these industry shifts to keep their own strategies up-to-date and relevant.
2. Be the "shovel seller" in the AI gold rush.
We’re in the middle of an AI tech gold rush, and in any gold rush, the "shovel sellers"—those who provide essential tools and infrastructure—often win big. NVIDIA is a great example. The company consistently comes out on top by constantly updating its AI-powered hardware. The vast majority of value is seen when companies improve their products with AI. For the greatest impact, focus on building the tools, platforms or services that others need to succeed.
3. Level the competitive playing field by delivering focused, personalized customer care that industry behemoths can't match.
Competing against industry giants isn’t about outmuscling them—it’s about outserving them. Startup founders will always have to compete with larger, more successful companies. Never underestimate the competition. Instead, focus on providing exceptional customer care and prioritizing customer experience. This creates a level of trust and partnership that the larger players can’t easily replicate.
4. Choose a remote or in-office model—hybrid is the worst.
Operating either a fully remote or an in-office model can work really well. The worst thing a company can do is implement a hybrid workplace model. GitLab was a remote company from day one, and it’s worked out great for us. Companies struggle when they try to do both. Hybrid setups often fail because they lack clarity and consistency. You miss out on the benefits of both and end up stuck with the drawbacks of each.
5. Taking a company public is huge, but having a strong G&A team in place increases the chances of IPO success.
Taking a company public demands more than just strong performance—it requires the ability to deliver consistent, predictable results every quarter. Your G&A (general and administrative) leadership team includes seasoned finance, legal and HR executives. Their input and support are crucial in decision-making and ensuring compliance with public market expectations. An IPO is exciting, but founders must be sure their company is prepared for the increased scrutiny and expectations.
.webp)
.webp)
