In this episode of The Eric Ries Show, I’m joined by Sid Sijbrandij, co-founder and Executive Chair of GitLab—one of the world’s most radically transparent and values-driven software companies.

Sid shares how GitLab evolved from an open-source side project into a publicly traded DevOps platform, all while remaining deeply aligned with its values. From turning down a $10 million offer to maintaining control through dual-class shares, Sid walks us through the principles and systems that have shaped GitLab from the start.

We also delve into GitLab’s renowned, live, and public 2,000-page handbook—how it functions not only as documentation but also as a recruiting tool, cultural backbone, and governance mechanism.

In our conversation today, we talk about the following topics:

• Why Sid once cold-pitched a submarine inventor—and got hired

• What led GitLab to turn down a $10M buyout and pursue an IPO

• Why GitLab favors “boring solutions” by default—and avoids reinventing the wheel

• The role of GitLab’s live, public handbook in building transparency and trust

• Why every change at GitLab must be made in the handbook first

• How the handbook supports hiring, alignment, and radical transparency

• GitLab’s approach to decentralized decision-making

• Why “customer results” sits at the top of GitLab’s values hierarchy

• Sid’s case for open core as the future of software

•How GitLab encourages informal connection in a remote-first culture—and the role of in-person meetups

• And much more

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Where to find Sid Sijbrandij:

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

• X: https://x.com/sytses

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Where to find Eric:

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• Podcast:⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://ericriesshow.com/⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ 

• YouTube:⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.youtube.com/@theericriesshow⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ 

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In This Episode We Cover:

(00:00 ) Intro

(02:52 ) The origins of GitLab

(04:15 ) The MVP of GitLab and how it has evolved to a DevOps platform 

(05:09 ) Sid’s internships and why he chose to work with submarines after

(08:57 ) How Sid became a submarine engineer 

(11:10 ) How Ruby sparked Sid’s interest in programming 

(12:28 ) Why GitLab said no to $10M and chose YC and decided to go IPO

(17:45 ) How GitLab kept control including granting 10x voting shares before going public

(22:25 ) GitLab’s extreme commitment to their values 

(28:29 ) GitLab’s Handbook and how changes are made 

(33:11 ) How GitLab handles pushback and how the handbook builds trust 

(37:38 ) An explanation of buyer-based open core at GitLab 

(38:35 ) The challenges implementing a lean startup approach 

(45:26 ) Keeping the organization aligned: How GitLab reinforces their values 

(53:51 ) Why GitLab updates values 

(55:57 ) Why senior engineers have an easier time securing budget

(57:21 ) Putting customers first: GitLab’s value hierarchy explained

(59:08 ) The case for decentralized decision-making—and how GitLab makes it work

(1:03:24 ) The handbook’s role in recruiting and building alignment

(1:06:25 ) Maintaining transparency after IPO

(1:10:55 ) The three phases of GitLab’s all-remote operating policy 

(1:17:04 ) How GitLab developed its open core business model 

(1:20:19 ) The trust-building power of open source and Sid’s case for open core

(1:25:20 ) Protective governance measures GitLab helps companies take 

(1:29:28 ) How Sid has been doing on his cancer journey, and his work to help others

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You can find episode references at ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.ericriesshow.com/⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

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Production and marketing by ⁠⁠Pen Name⁠⁠.

Eric may be an investor in the companies discussed.