The Boy Bosses of Silicon Valley Are on Their Way Out

The young kings of Silicon Valley are taking a break.

They're writing about their legacies. They are hopeful for their companies. They quit their jobs to lead start-ups.

In recent weeks, Ben Silbermann, a co-founder of the digital pinboard servicePinterest, resigned as chief executive; Joe Gebbia, a co-founder of the home rental companyAirbnb, announced his departure from the company's leadership; and A poorva Mehta, the founder

The resignations signify the end of an era at these companies, which are among the most valuable and well known to emerge from Silicon Valley in the past decade. In recent years, investors have dumped large sums of money into a group of highly valued start-ups that are worth $1 billion or more. In the past, entrepreneurs were often replaced by more experienced executives or pressured to sell, but that is no longer the case.

This approach began to change after the stock market fell. Silicon Valley's young companies were urged to cut costs by venture capitalists. Wartime C.E.O.s who can do more with less were being talked about by the industry.

It was not possible for visionaries to have patience. The founder-led companies were starting to look like liabilities.

"All of that changed in the last 90 days, and it's not coming back anytime soon." He said the story is no longer attractive to investors.

Along with Mr. Silbermann, Mr. Gebbia and Mr. Mehta have resigned.

They are not going to leave on a high note. The company's shares are down from last year. A shareholder known for pressuring companies to make changes took a stake in the company. The shares of the company are down. In March, the company lowered its internal valuation by almost 40 percent as it prepares to go public.

Kevin Werbach is a professor of business at the Wharton School of the University of Pennsylvania. Staying in the saddle is less appealing if you are rich, famous and successful.

The modern boy boss is believed to be the brainchild of Mark Zuckerberg. Carrying business cards that read, "I'm C.E.O., bitch" and ruffling Wall Street feathers with his " disrespectful" hoodie, he demanded investors allow him to keep a controlling interest in Facebook as it grew. As venture capital firms rushed to appear as accommodating as possible, they lavished the entrepreneurs with perks and services. One firm made a public promise to never vote against a founder.

"It inspired our whole generation to believe in the impossible that they could start a company," said Trace Cohen, an investor in very young start-ups.

The founding fathers took advantage of their strength. Even though the companies outgrew their skills as managers, they remained in the top jobs. They kept their companies private so they wouldn't have to deal with unprofitable business realities. Female founders rarely get the benefit of the doubt.

As the tech sector became a dominant force in our economy, the cult of the start-up founder made its way into popular culture by way of celebrities.

The creators of this era took their latitude too far. Even though he held a controlling stake in the company, Adam Neumann was forced out due to his spending and partying. The ousting of Kalanick was due to his aggressive tactics at the company.

Most of it was held on through the initial public offerings. It turns out that running a publicly traded company with its attendant fiduciary duties, analyst calls and slog of quarterly earnings isn't as exciting as start-up life. They're giving up the power and control they used to have.

Mr. Silbermann said that he had been given a lifetime's worth of gifts. Mr. Gebbia, who will become an adviser toAirbnb, posted an effusive reminiscence of the company's early days, along with photos, nicknames of his co- founders and lessons about the goodness of humanity. Mr. Chesky is its CEO. Mr. Mehta said that he has thought about Instacart for every waking minute of the last 10 years.

Silicon Valley has been made more positive by them leaving as billionaires. It is just getting started, it is in the best hands it has ever been in, and there is a huge opportunity ahead. The two men said they had new projects in the works.

According to investors, there will be more resignations from founders who realize they have to work harder for less. Some executives can take over and grow it with different incentives.

The founder of Common, a start-up that operates communal living spaces, announced last week that he would be stepping down as chief executive. Karlene Holloman, the company's head of property, will become the new CEO.

Mr. Hargreaves took the market downturn into account. He said it was good to have a founder at the top of the company who could sell investors and employees. He said that operations don't matter a lot. No one is paying much attention to the bottom line.

He said that today's environment requires someone with Ms. Holloman's skills. He said that in a tighter time, you want an operator in that seat.

He said that a lot of founder-C.E.O.s stay too long.

Increased demands and more pressure can be expected of the founders who have so far remained on. More than 1,000 employees have been laid off by the stock trading app. According to Dan Dolev, an analyst at Mizuho Securities, several investors had privately suggested that the company bring in a more seasoned executive to help its co- founder. Baiju and Mr. Tenev own a controlling stake in the company.

Mr. Dolev said that they could use some assistance with operations.

A spokeswoman for the company said that the company had recently undergone a reorganization and that they had recently hired executives from the SEC.

The release of books and TV shows about WeWork and other tech darlings has caused start-ups to lose their halo of positive cultural cachet.

The status isn't there once you've made a certain amount of money.

There is a comeback story every now and then. The reverse dynamic of founders returning to right the ship could happen if the market gets worse.

It would be similar to the original cult-hero founder, who commanded admiration for a long time before the Valley became a hive of innovation. He may have been the original boy boss.