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Drew Houston is the co-founder and CEO of Dropbox. Under his leadership, Dropbox has grown from a simple idea to a service used by over 700 million registered users globally, with a valuation exceeding $9 billion. Drew has led Dropbox through multiple phases, from explosive viral growth, to battling all the tech giants at once, to reinventing the company for the future of work. In our conversation, he opens up about:

• The three eras of Dropbox’s growth and evolution

• The challenges he’s faced over the past 18 years

• What he learned about himself

• How he’s been able to manage his psychology as a founder

• The importance of maintaining your learning curve

• Finding purpose beyond metrics and growth

• The micro, macro, and meta aspects of building companies

• Much more

Find the transcript at: https://www.lennysnewsletter.com/p/behind-the-founder-drew-houston-dropbox

Some takeaways:

1. To stay ahead as a founder/CEO, you must keep your personal growth curve ahead of the company’s growth curve. To do so:

   1. Think systematically about what you’ll need to know 1, 2, and 5 years from now

   2. Build a community of peers at different stages (same stage, 2 years ahead, 5 years ahead, 20 years ahead)

   3. Read voraciously across disciplines and study historical parallels

   4. Run toward discomfort rather than away from it

2. Managing your psychology is crucial for long-term success:

   1. Separate your identity from the company’s current state

   2. Build support systems (therapy, coaching, meditation)

   3. Recognize that challenge is inevitable but suffering is optional

   4. Find purpose beyond metrics and external validation

3. Founder burnout happens when you’re stuck in “firefighting mode.” You need intentional time away from the day-to-day chaos to reflect on the bigger picture. Schedule “think weeks” or personal retreats to step off the treadmill and reorient your direction. It’s easy to be busy and unproductive—make sure your busywork isn’t getting in the way of the truly important stuff.

4. The best leaders take 100% responsibility, even when it’s uncomfortable. Don’t rationalize your mistakes. Instead, reflect on what you could have done differently and own it. This mindset will prevent you from making the same mistakes and allow you to grow stronger as a leader. Watch out for the “seniority gap” as companies scale:

   1. Fast growth can lead to rapid internal promotions

   2. Without enough experienced leaders, teams solve known problems through trial and error

   3. Maintain a balance between high-potential talent and experienced leaders who can mentor them

5. Recognize the business cycles around you and how the market changes. The strategies that worked yesterday might not work today, so stay flexible. For example, marketing today is shifting from traditional PR to more direct, social-media-driven approaches. Constantly reevaluate the “game” you’re playing and be ready to pivot with the times.

6. Want attention? Figure out who needs to pay attention to you and work backward. Drew’s viral YC hack is a perfect example—he reverse engineered what Paul Graham (YC’s co-founder) was doing (hitting refresh on Hacker News) and created a video that caught his eye.

Where to find Drew Houston:

• X: https://x.com/drewhouston

• LinkedIn: https://www.linkedin.com/in/drewhouston/

In this episode, we cover:

(00:00) Introduction to Drew and Dropbox

(04:44) The three eras of Dropbox

(07:53) The first era: Viral growth and early success

(14:19) The second era: Challenges and competition

(20:49) Strategic shifts and refocusing

(29:36) Personal reflections and leadership lessons

(40:19) Unlocking mindfulness and building support systems

(43:14) The Enneagram test

(50:35) The challenges of being a founder CEO

(58:11) The third era: Rebooting the team and core business

(01:22:41) Lessons and advice for aspiring founders

(01:27:46) Balancing personal and professional growth

(01:42:38) Final reflections and future outlook

Referenced:

• Dropbox: https://www.dropbox.com/

• Y Combinator: https://www.ycombinator.com/

• Paul Graham’s website: https://www.paulgraham.com/

• Hacker News: https://news.ycombinator.com/

• Arash Ferdowsi on LinkedIn: https://www.linkedin.com/in/arashferdowsi/

• Sequoia Capital: https://www.sequoiacap.com/

• Pejman Nozad on LinkedIn: https://www.linkedin.com/in/pejman/

• Mike Moritz on LinkedIn: https://www.linkedin.com/in/michaelmoritz/

• TechCrunch Disrupt: https://techcrunch.com/events/tc-disrupt-2024/

• Dropbox viral demo: https://youtu.be/7QmCUDHpNzE

• Digg: https://digg.com/

• Reddit: https://www.reddit.com/

• Hadi and Ali Partovi: https://www.partovi.org/

• Zynga: https://www.zynga.com/

• Steve Jobs announces Apple’s iCloud: https://www.youtube.com/watch?v=ilnfUa_-Rbc

• Dropbox Carousel: https://en.wikipedia.org/wiki/Dropbox_Carousel

• Dropbox Is Buying Mega-Hyped Email Startup Mailbox: https://www.businessinsider.com/dropbox-is-buying-mega-hyped-email-startup-mailbox-2013-3

• 5 essential questions to craft a winning strategy | Roger Martin (author, advisor, speaker): https://www.lennysnewsletter.com/p/the-ultimate-guide-to-strategy-roger-martin

• Intel: https://www.intel.com/

• Gordon Moore: https://en.wikipedia.org/wiki/Gordon_Moore

• Netscape: https://en.wikipedia.org/wiki/Netscape

• Myspace: https://en.wikipedia.org/wiki/Myspace

• Bill Campbell: https://en.wikipedia.org/wiki/Bill_Campbell_(business_executive)

• Enneagram type descriptions: https://www.enneagraminstitute.com/type-descriptions/

• The Myers-Briggs Type Indicator: https://www.themyersbriggs.com/en-US/Products-and-Services/Myers-Briggs

• Brian Chesky’s new playbook: https://www.lennysnewsletter.com/p/brian-cheskys-contrarian-approach

• Ben Horowitz on X: https://x.com/bhorowitz

• Why Read Peter Drucker?: https://hbr.org/2009/11/why-read-peter-drucker

• GitLab: https://about.gitlab.com/

• Automattic: https://automattic.com/

• Dropbox Dash: https://www.dash.dropbox.com/

• Welcome Command E to Dropbox: https://blog.dropbox.com/topics/company/welcome-command-e-to-dropbox-

• StarCraft: https://en.wikipedia.org/wiki/StarCraft_(video_game)

• Procter & Gamble and the Beauty of Small Wins: https://hbr.org/2009/10/the-beauty-of-small-wins

• Teaching Smart People How to Learn: https://hbr.org/1991/05/teaching-smart-people-how-to-learn

Recommended books:

• Guerrilla Marketing: Easy and Inexpensive Strategies for Making Big Profits from Your Small Business: https://www.amazon.com/Guerilla-Marketing-Inexpensive-Strategies-Business/dp/0618785914

• Playing to Win: How Strategy Really Works: https://www.amazon.com/Playing-Win-Strategy-Really-Works/dp/142218739X

• High Output Management: https://www.amazon.com/High-Output-Management-Andrew-Grove/dp/0679762884/

• Only the Paranoid Survive: How to Exploit the Crisis Points That Challenge Every Company: https://www.amazon.com/Only-Paranoid-Survive-Exploit-Challenge/dp/0385483821

• Zone to Win: Organizing to Compete in an Age of Disruption: https://www.amazon.com/Zone-Win-Organizing-Compete-Disruption/dp/1682302113

• Warren Buffett’s books: https://www.amazon.com/warren-buffett-Books/s?k=warren+buffett&rh=n%3A283155

• Poor Charlie’s Almanack: The Essential Wit and Wisdom of Charles T. Munger: https://www.amazon.com/Poor-Charlies-Almanack-Essential-Charles/dp/1953953239

• Invent and Wander: The Collected Writings of Jeff Bezos: https://www.amazon.com/Invent-Wander-Collected-Writings-Introduction/dp/1647820715/

• The 15 Commitments of Conscious Leadership: A New Paradigm for Sustainable: https://www.amazon.com/15-Commitments-Conscious-Leadership-Sustainable-ebook/dp/B00R3MHWUE

Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com.

Lenny may be an investor in the companies discussed.