Startup Founder Mental Health Will Crumble in 2024, VCs Predict
Startup founders are predicted to face an “unprecedented” crisis of mental health in 2024 due to stress from a funding shortfall. Investors are warning that struggling startups will face difficulties as cash runs low and investors encourage founders to return capital. This has led to concerns over the mental health of founders, who are already facing the emotional burden of loneliness, self-doubt, and sleepless nights. The challenging game of being a founder in a tech downturn has made the job even lonelier for many.
Founders are experiencing anxiety and stress due to a shortage of funding and a struggling economy. In addition, the COVID-19 pandemic, remote work, and political uncertainty have added to the mental strain. Investors predict that as capital markets fail to improve, these pressures will only multiply. Founder anxiety often goes unnoticed as they try to save face for employees and investors, fearing that discussing mental health issues openly could damage their credibility. Many founders suffer in silence, only sharing their struggles with other founders or their spouses.
However, there is hope as speaking about mental health has become less taboo in recent years. Investors are now offering support and resources to address founder mental health and burnout. Some investors have set aside a percentage of their investments to subsidize services like coaching and therapy for founders. Others provide office hours for founders to discuss their stressors and ensure they are taking care of themselves. The normalization of discussing mental health and providing support is seen as a necessary step to address the mental health crisis among founders.
