Startup founders are “overworked”, “exhausted” and “broken” — and dozens of them are considering leaving their businesses in the next year. 😖 Sifted surveyed 156 founders about their mental health — and the results are pretty upsetting. 85% of founders told us they suffered from high stress last year, while 75% said they had anxiety. 45% told us they felt that their mental health was ‘bad’ or ‘very bad’ at the moment. “I have been at extremely high levels of stress pretty much non-stop and I am tired and exhausted most of the time,” said one respondent. “I’m not sure I can muster the energy to keep going,” said another. Worryingly, they’re far from alone: 49% of founders said they’re considering quitting their startup this year. “I cannot sustain this rhythm anymore. Solving problems seems the only purpose in my life and while doing it my mental and physical health is deteriorating,” one founder told us. Another said: “My personal life suffering and cost of living/startup wages are not enough to support my family.” Several founders brought up “financial security” as a key reason for considering quitting for a “more stable job”. The challenging fundraising environment, coming so shortly after the pandemic, coupled with investors’ focus on reaching profitability, is the number one reason founders are “broken”, our survey found. But there are other concerns. Founders are worried about the toll it’s all having on their personal lives, with some telling us the stress had(or nearly) ended their marriage. That’s not surprising; 65% of founders told us they lean on their partner or spouse for support, while 64% also told us they’d started spending less time with friends and family over the past year. That’s a hard deal for any partner. As for non-romantic partners, the strains of the current environment are also leading to cofounder break-ups. “I’m sick of arguing with my cofounder over the future,” said one respondent. Not every founder, however, feels this way: 28% said if they left their current startup they’d want to start a new one. But a far bigger group are considering leaving startup life for now. Of those wanting to depart their business, 39% said they’d take a break while 30% would look for a job. For the investors among our readers, what do you think of these findings? For the founders’ partners out there, how tough has the last year been for you? And for the founders, my colleague Sadia Nowshin would like to hear more about how you’re feeling. If you’re happy to be interviewed by her (not anonymously, this time), please send her an email: [email protected] https://lnkd.in/eMZi4HUM #founders #mentalhealth #vc #startups
Could it also not be that this phenomenon is simply another “shakeout” from the years of over flooding the market with capital. To say not everyone is cut out to love the life of a founder or early stage entrepreneur/leader would be a massive understatement. It takes the type of rare person who thrives on the pressure, thrives on the stress. Crazy as it may sound I have always been happiest when faced with seemingly insurmountable odds. This feeling started in my twenties while in the Army and continued throughout my professional career. I tried slowing down a few years ago and even contemplated retirement. But I found myself very quickly bored and actually missing the stress and the pressure. I guess the point I am trying to make is if you as an entrepreneur cannot learn to embrace those feelings then maybe this life is not for you.
Just another day in the life of eating glass while staring into the abyss with a wry smile :)
I was reflecting on this last night and thinking of ways investors / others could help alleviate some of this - I do think short replies to investor updates (which founders take a few hours to write) with some positive / constructive feedback (literally 2 lines) can genuinely be helpful! Often many first time founders have no idea how well they are doing - we’re constantly feeling bad about how much there is to do, balls we’re dropping, things we’re not doing at home etc Would love another article on practical tips from founders / investors to start improving things, even just slightly!
The allure of venture capital is undeniable, but the cost on founder well-being is too often overlooked. My own journey and conversations with fellow founders reveal a growing discontent. Stress, burnout, and the constant chase for the next round can overshadow the very innovation we seek to create. Is the traditional VC model truly beneficial for founders, or do we need a new paradigm?
Who cares .. sorry if this offends the comment section , but who really cares ? Most of the people around will tell you ' well you chose this so live with it or quit ' most founders suffer from lack of support and here I am not talking only money .. & why should anyone care afterall founders are working on their dream and they are expected to endure this all .. it's just sad how very very people understand this .. I say all of this with personal experience and I have no complaints :) no one is obligated to support us .. but it's be nice if people were a little kinder to us 😀
I am a founder, yes it is hard, but it is manageable 1) validate there is a market and product fit. call 100 people ask the same questions. record the answers. you will be objectively more confident. 2) surround yourself with good people. this is _the_ most important life decision you make. The decision is yours and yours alone to make. 3) pick your battles on what to build, and what to spend. again these are your decisions to make. resist pressure to overpromise, or overcommit.
It's disheartening to see the toll that the entrepreneurial journey can take on founders, both personally and professionally. These statistics underscore the immense pressure and sacrifices that come with building and scaling a startup. It is especially difficult to be patient and turn businesses around in such difficult times. One should recognise that founders are more than just entrepreneurs; they're visionaries who pour their hearts and souls into their ventures, but they also need support or someone else to hand the baton over to. We, Veloz Capital Ltd are a founder friendly buyout fund, trying to help founders by addressing these problems. We aim to empower founders to take a step back if needed, while still retaining a stake in the upside potential of their hard work. Together, we can turn challenges into opportunities and ensure that founders' legacies endure, even in the face of adversity.
How about serial founders and the difference in experience between their different startups in different times and conditions? My first startup was 28 years ago, and did different things every 3 to 8 years since... honestly, some were exhausting while others were fairly happy periods. It depends a lot on the sales and team you delegate to.
This is tragic and it doesn't have to be this way - founders can achieve balance, play to their strengths, and enjoy the journey rather than martyring themselves to it. Founding can be lonely and stressful and challenging and having someone, with no vested interest to speak with confidentially can take the pressure off spouses and enable co-founders to voice their needs and assess how they are working together before it becomes an issue. Sadia Nowshin if you want to speak to founder coaches too - to talk about solutions - pls feel free to reach out.
Founder, Entrepenuer, Dinosaur Goo, what is it good for?
9moWhat was the sample size?