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In my years as a CEO and board member, I’ve witnessed firsthand how the path to a thriving startup can be precariously narrow. The difference between a “unicorn”—a startup that achieves a billion-dollar valuation—and a “unicorpse”—one that secured massive investments only to stumble when growth stagnated—often hinges on one crucial factor: people. It’s not the flashy, artificial valuations or the groundbreaking technology that defines long-term success; it’s the team you build, the culture you foster, and the purpose that unifies them.

The rise and fall of AI startups

During the initial AI boom, the tech industry saw an unprecedented surge of startups with soaring valuations, driven by a flood of capital and the promise of revolutionary technology. The hype was bigger than anything I’ve seen in my career. But the real challenge was—and still is—translating that promise into tangible business impact.

Too often, companies get caught up in sprinkling AI wherever possible, expecting magic to happen. But technology must do more than boost efficiency—it needs to create new workflows, revenue streams, and business models, while keeping the focus on the people who use it. When startups focus solely on growth metrics and investor expectations, they can lose sight of this integration. As the booming startups of yesteryear struggle under the weight of unrealistic valuations, the cracks in their foundations—poor team cohesion, lack of clear purpose—become glaringly obvious.

People first: A philosophy born from experience

My philosophy of prioritizing people wasn’t something I learned from a business book; it was forged in the trenches of leading teams through triumphs and trials. Life is a team sport. Whether in family, organizations, or business, the team’s strength determines the outcome.

I’ve always believed that a cohesive team, one that shares a mission that matters and delivers aligned results, is the backbone of any successful venture. This lesson was hammered home while leading Google Canada. Industries were shifting rapidly from analog to digital, and while the team was growing, it wasn’t reaching its full potential. I challenged them with a bold vision: to turn Google Canada into a billion-dollar business within two years. The initial reaction was disbelief, but how the team pulled together to surpass expectations underlined the power of a shared purpose.

We weren’t just aiming for financial milestones; we were striving to make the web work for Canadian businesses, to be the best and first at everything we did. This clearly defined purpose resonated deeply with the team, and together, we not only reached that billion-dollar mark but surpassed $2 billion within three years. It wasn’t just about the revenue; it was about the quality of the team, a sense of pride, a commitment to excellence, and the mission that united us.

The consequences of undervaluing people

On the flip side, I’ve seen what happens when companies lose sight of their people. A few years back, I was brought in to advise a promising startup. They had just raised tens of millions in one week—a staggering achievement by any measure. But despite their success, there was a glaring issue: The founders were so focused on growth that they neglected the importance of building a strong, united team, opting instead to micromanage everything and everyone.

The result was inevitable. The company grew rapidly, but the internal culture was toxic. Turnover was high, and despite the influx of capital, the cracks in their foundation became too large to ignore.

Navigating market shifts and economic downturns

I’ve been through my share of rocky economic climates, and during these periods, a people-first approach becomes even more critical. Maintaining team morale, being transparent with your people, and making tough decisions keep the company aligned with its mission. This was most evident during my time at Evernote, which was burning through cash at an unsustainable rate when I took the helm.

We had to make difficult cuts, but we did it with the empathy and transparency that are the foundation for a strong team culture. It wasn’t easy, but it was the right thing to do, ultimately sustaining our team’s focus to help the company survive in the face of adversity.

Building teams with a united purpose

So how do you build a strong foundation of people for lasting success? It starts with intentional hiring—bringing in people with the right skills and who align with the company’s values and mission. Leadership plays a critical role here. It’s not just about setting a vision; it’s about over-communicating and reinforcing that vision through every decision, hire, and action.

At data and AI company GrowthLoop, where I currently serve as CEO, the culture we’ve built directly reflects our commitment to people-first leadership. We’re not solely focused on metrics or growth; we’re equally dedicated to building a team that genuinely cares about each other and is customer obsessed. One of the most telling aspects of our culture is our weekly World’s Fair all-hands gathering, where we highlight customer needs and wins, and team members share their appreciation for one another. These aren’t just empty gestures—they’re real acknowledgments of the hard work and collaboration that drive our success (and frankly, a big highlight of my week).

What’s just as important is our commitment to open communication. We encourage team members to voice their opinions, especially when they disagree. Through these candid conversations, we find the best solutions. And despite any differences, we always reunite and move forward as a focused team united in purpose. This atmosphere of mutual respect, recognition, and open dialogue empowers us to deliver incredible value to our customers and partners.

A lesson for future leaders

If there’s one key lesson I’ve learned, it’s this: Sustainable success comes from building a people-first culture from day one. Future startup leaders should focus not just on what they’re building, but on how they’re building it—ensuring that their teams are cohesive, their purpose is clear, and their leadership is authentic and committed to overcommunication.

The old flex was the size of your team. In today’s market, the new flex is how small and efficient your team can be while maintaining a people-first culture. The difference between a success story and a short (lived) story is how a business embraces small, agile teams united by a shared purpose and driven by a mission that matters.

Chris O’Neill is the CEO of GrowthLoop. He's also served as the CEO of Evernote and as managing director of Google Canada, among other roles. He's a board member at Gap and founder of Bobcaygeon Capital, which invests in tech companies.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.