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Notion’s Ivan Zhao: The Refounder

Sequoia CapitalMay 21, 20261h 3m
Topics54
Jazz Band vs Marching Band Mantra0:00Introduction to Ivan Zhao and Notion0:44Journey to AI-Native Organization2:32Lessons from Investor Influence and Early Mistakes5:00Building with AI: Technology-First Development6:00Company DNA and Multi-Skilled Roles7:30AI in the Middle of Organizations8:00Steel for Organizations Analogy9:31Hierarchy vs Flat Structures10:30Changes in Hiring and Compensation11:02Evolving Roles for Designers and PMs13:30Shifting Hiring Criteria14:30Restructuring Marketing15:31Changes Across Functions and Interview Processes17:00Meritocracy and Wartime Compensation18:00Jazz Band vs Marching Band Culture20:31Planning in an AI-Native Company21:30Gross Margins and Cost Considerations23:32Refoundings at Notion24:30Refounding as Reinvention25:05The Japan Refounding Story25:30Why Kyoto26:00The Liberating Nature of Refounding27:03Japan's Influence on Notion27:31Story and Location28:30Why They Didn't Quit29:01Continuing the Lineage30:02Craft vs. Tinker Culture30:30The Broken Lineage31:30Advice for Founders Going Sideways32:32The Second Refounding34:00Internal Doubts and Conviction34:31The Painful AI Rebuilding Period35:00Advice for AI Refounding36:30Feeling the Technology37:31Uncalcifying Organizations38:30Keeping Acquired Founders Motivated39:31Starting vs. Scaling40:31The Future of Organizations42:02AI Decision-Making in Companies44:30Knowledge Management's Time45:00Ivan's Personality and Leadership45:30Preparing for All-Hands47:00Daily Schedule and Energy Management48:33Truth-Seeking Over Humility50:32Worldview and Perspectives50:38Advice for Early-Stage Founders50:38Equilibrium with Personal Values51:02Leaning into Strengths vs. Fixing Weaknesses52:30Building Enterprise Sales53:00Mistakes in Enterprise Sales and Hiring55:32Company Culture and Sales Team Integration56:30Company as Religion and Cult Leadership57:01Podcast Closing and Takeaways58:30
In a Nutshell

Ivan Zhao refounded Notion twice—first in Kyoto after missing product-market fit, then in Cancun to rebuild it as an AI-native company. He is shifting the organization toward a flatter, "jazz band" structure where AI handles information flow and routine decisions, while humans focus on taste, direction, and high-agency work. Hiring now prioritizes curiosity, agency, and value alignment over experience, with roles blurring as designers, PMs, and engineers work directly with models in a technology-first process.

AI-Generated Notes

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Ivan Zhao introduced a company mantra: wanting to be a jazz band, not a marching band. This reflects a self-reflecting value system and auto-equilibrium with his own personality. He has been hiring more jazz band people, and AI developments over the past two to two and a half years have allowed these types of people to shine more. The conversation explores whether this represents a new mode beyond founder mode and manager mode, with "Jasmo" suggested as a possible name.

Ivan Zhao is described as the refounder of Notion. He started the company years ago, but in 2015 lacked product-market fit. He and his co-founder moved to Kyoto and restarted the company, rebuilding it from scratch. After achieving product-market fit, the company took off. In 2023, he repeated this refounding approach around generative AI during an offsite in Cancun, restarting the company again. He is viewed as the canonical example of how a SaaS company can transition into an AI company. Zhao is very AI-native in how he organizes the company, compensates people, and builds today.

Zhao took a detour from traditional founder mode thinking by trying to delegate and grow the company. Notion remained very small in its early days, with under 10 people around product-market fit in early 2019 to 2020. The company became profitable because it was small. They raised venture capital in the early days, which was tough—the first five years involved scraping for money. This contrasted with the current era, where the lack of product-market fit created despair and uncertainty about direction. The company stayed small and tasted the benefits: profitability, easier fundraising, and being default alive. They resisted growing team size significantly.

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