Mental Health – An Ignored Area in the Startup Space

Entrepreneurship looks great . Sounds great. Reality check - it’s not what it looks like . For the 1 successful entity created .. the many which has failed ( that’s a wrong word ) is unknown and not countable ( many of the  instances do not get reported). And what is a failure today , can be a success tomorrow.

Entrepreneurship looks great. Sounds great. Reality check - it’s not what it looks like . 

For the 1 successful entity created .. the many which has failed ( that’s a wrong word ) isunknown and not countable ( many of the  instances do not get reported). 

And what is a failure today , can be a success tomorrow. 

Being prepared is the thing which founders can do and must do. This is easier said than done.Let me share an anecdote of a real case. 

In one of the earlier investments which we had done, the cap table had marquee investors , apedigree founding team , and an ecosystem promising growth . However, over the next 2quarters, the rules in the ecosystem changed, regulatory. And what was promising becamenon- existent.  

Majority would have folded ( easy way out ). This team was prepared , worked alongside ,accepting the new changes . And instead of a new fund raise in the next 18 months , it tookdouble the time to raise fresh capital and got a few more marquee investors and grants .Adapted the business, without compromising on the mission and vision.  

Investors are happy that the investment is still in the green. 

Let’s give a thought to the health of this team - more precisely to the mental health . This is asubject, which we do not talk about or enquire . As investors , we talk about KPI’s , ROI,CAC, and all such related matters. 

Did the team survive - Yes. The team was mentally strong and as Investors, besides thefinancial metrics, it was important to tell the team that we believe in you . Take care of yourhealth ..feel free to voice your thoughts, without guarding your speech or thoughts . As wetalk more and with different voices , one can get more clarity .  

What about the instances where the founding team is of only 2-3 young 20’s graduates,wanting to make a mark . And the upheavals of the year 2020 strike you. 

The pressure to scale the business which was always there , now has turned into stay put.How to answer the investors, what to say , how to say , how much to say.  

As investors ,we always recommend and tell the portfolio companies to share as is .Transparent communication has helped . The business today has pivoted , revenue growth inplace . 

But the tough moments are the ones , which helped the founders to navigate . 

With increasing pressure - investors , peers, ecosystem , the most abused part is mentalhealth. 

As scale happens in the business , it’s natural for the founders to have differences of opinion .This is another area, which needs to be addressed and looked into. 

Again , the competency and capacity of the founders can differ , as the businesses grow.Having honest communication with the stakeholders is the key. 

Having a coach , as you scale the business , is one area which needs to be looked into , as asupport mechanism . 

As it is  said - it’s all in the mind and the mind needs to be in healthy shape.