Scaling your startup beyond 150 employees? Hitting the 'Dunbar wall

Elliot had spent the last three years in what felt like hyperspeed, transforming his small software startup from a scrappy team of four friends working in a co-working space to a bustling company with 150 employees. Somehow, he still knew everyone’s name, an achievement he wore like a badge of honor. He even remembered little details—like Andrea’s cat named Marvin, Victor’s passion for ultramarathons, and Leah’s talent for debugging with ease. I recommend you to listen to our podcast episode about this topic.

But lately, something felt different. Elliot noticed small frustrations creeping into the team’s interactions. Someone in marketing seemed irritated about not being included in product updates, and a junior engineer seemed lost after a project’s priorities changed unexpectedly. At first, he brushed these off as minor growing pains, not worth worrying about. The company was growing fast—maybe too fast to address every small issue.

One Monday, after a demanding sprint, Elliot received an email from Greg, a designer hired three months earlier. Greg was polite but straightforward: he felt isolated, unclear on what the rest of the team was working toward. He’d heard from another developer that project goals had shifted, but no one had informed him. He wanted to contribute effectively but needed more direction.

Elliot’s initial reaction was frustration. “Why didn’t Greg just ask his team?” he thought. Then it hit him: Elliot didn’t know Greg’s team members very well anymore either. The informal, free-flowing communication that once kept the team aligned had broken down. And Greg wasn’t alone—Elliot started noticing more blank stares in meetings, more confusion over priorities, and more frustration around unshared information.

Later that week, Elliot read about the Dunbar number. Anthropologist Robin Dunbar suggested that humans can only maintain stable relationships with about 150 people. Beyond that, the sheer number of interactions becomes too much to handle effectively. Elliot’s startup had reached this threshold, and the growing team was beginning to feel like strangers to each other. With 150 people, managing over 11,000 potential interactions was impossible.

Elliot remembered a conversation with his mentor, Melissa. She’d once said, “After around 100 people, your job isn’t managing individuals; it’s creating systems so others can manage independently.” Back then, he thought she was overreacting. But now, he understood. His instinct to personally know and be involved with everyone was holding the company back.

The next day, Elliot called a meeting with his leadership team. “We’re at 150 people,” he began, “and things are starting to slip. I can’t keep up with everyone, and neither can you. We need to create new systems to stay on track.”

The team fell silent, digesting the shift. Finally, Claire, the head of product, said, “We need a structured approach to communication. It’s getting hard to know who’s responsible for what.”

Elliot agreed. “Casual check-ins won’t cut it anymore. We need dedicated communication channels. Weekly all-hands meetings, maybe a monthly newsletter, something to keep everyone in the loop.”

They spent hours mapping out a new communication and alignment structure. They established weekly team meetings, a monthly company update, and dedicated channels for cross-departmental updates. Elliot also realized that he needed to empower his department leads, making them responsible for creating alignment within their own teams.

Keeping Culture Strong in a Bigger Company

Elliot and his leaders also created new rituals to maintain a sense of culture: “demo days” for project showcases, cross-team lunches, and open Q&A sessions with leadership. These initiatives helped keep the team connected as the company grew.

Seeing the Difference

Over the next few months, Elliot saw tangible improvements. Greg, the designer, took ownership of design team updates, ensuring no one felt left out again. Team members started solving problems independently and finding ways to connect, without needing Elliot’s intervention.

Moving Forward, One Brick at a Time

For the first time in months, Elliot felt like he could breathe. Scaling wasn’t about pushing harder; it was about creating systems that could handle what he couldn’t. This shift would allow his startup to keep growing—without him needing to know every detail personally.

They’d hit the Dunbar wall but had found a way to scale beyond it. And with each new hire, they’d keep building, brick by brick.

I also recommend you to read related articles:
Your First Recruiter: A Guide for Startups and Entrepreneurs to Hiring the Right HR Talent
When to Use Fractional HR vs. Hiring a Full-Time CHRO: A Growth Guide for Startups
Building Corporate Culture: Beyond Buzzwords to Business Value
How to Attract, Hire, and Retain Top Talent: Clear Steps for Long-Term Success

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