## Startup Founders Struggle with Depression and Addiction: The Cost of Courage and Imagination

For investors and company employees, a startup’s move to an IPO is a celebration. However, for the company’s founder and CEO, navigating this milestone can be incredibly challenging. Physically taxing, the early years of a business venture serve as a formidable trial for entrepreneurs, as reported by The Wall Street Journal.

Left on the chart are the results from a 2016 survey conducted by specialists from the University of California, San Francisco, the University of California, Berkeley, and Stanford University, published in the journal Small Business Economics. This survey highlights the prevalence of mental disorders among entrepreneurs compared to a control group. Disorders such as depression, ADHD (Attention Deficit Hyperactivity Disorder), anxiety, substance abuse, and bipolar disorder are significantly more common among entrepreneurs than in the general population.

These high-stress environments are compounded by the unique personality traits that drive individuals to start their own businesses. Traits like high energy levels, low sleep requirements, relentless drive, and vivid imagination not only fuel the creation of innovative startups but also make these entrepreneurs more susceptible to mental health challenges. As Professor Kerry Sulkowski, a prominent New York psychoanalyst who advises company executives, explains, these characteristics enable entrepreneurs to persist when others deem their efforts risky but simultaneously increase their vulnerability to mental health issues.

Entrepreneurs often endure tremendous pressure, working tirelessly in a frenetic pace that is often glorified as a badge of honor. Adding to this is the psychological strain of pitching to investors: “Throughout the fundraising phase, before securing a lead investor, you feel terrible because every investor you speak with tells you how bad your business is,” says Kimbal Musk, co-founder of Zip2, which he and his brother Elon sold for $307 million when he was 27. Despite early financial success, Kimbal struggled with depression, leading him to pivot towards culinary education and subsequently launch culinary-focused startups like Kitchen Restaurant Group, Big Green, and Square Roots.

Another entrepreneur, 34-year-old Rebecca Jean Alonzi, found herself developing an addiction to sugary foods, consuming them late into the night while working on her startup, Nourish, which delivered farm-fresh meals to offices. Early clients from Silicon Valley allowed her to gain over 15 kilograms. To combat her addiction, Rebecca joined Overeaters Anonymous and took up running to lose the weight. However, concentration problems persisted, and in 2012, she was diagnosed with ADHD and prescribed Adderall, which helped her become “thin, fierce, and highly productive.” After experiencing severe side effects, she discontinued the medication, deciding that the harm it caused her body was unacceptable, especially as she was building a company centered around healthy eating. Rebecca eventually brought on a new CEO while continuing to work on new projects within Nourish, focusing on “restorative” practices like deep breathing, phone-free walks, and barefoot activities.

While many entrepreneurs develop strategies to manage the immense pressure, for some, the relentless pace becomes destructive. Brandon Truaxe, founder of the cult-favorite cosmetics company Deciem, struggled with excessive use of ephedrine, caffeine, and eventually crystal methamphetamine. His deteriorating behavior led investors to sue him in October 2018 due to alarming social media posts and unauthorized relocation of the company’s headquarters. Bruised by ongoing hospitalizations for severe drug abuse-induced hallucinations, Brandon tragically died in January 2019 after falling from his 32nd-floor apartment.

In the tech industry, there’s a prevailing belief that startup failures stem more from the “human factor” than the business model itself. A 2016 study by the National Bureau of Economic Research, surveying over 13,000 venture capitalists, identified the strength of the “management team” as the primary reason for startup failures in 92% of cases. This highlights the critical role that founders’ mental health and personal well-being play in the success of their ventures.

Recognizing the importance of this issue, some venture capital firms are now placing greater emphasis on the personal development of founders, rather than solely focusing on their business acumen. Contrary to the widespread notion that startup founders must be perpetually driven and work around the clock, leading to burnout and health issues, there is a growing movement to support entrepreneurs in achieving a healthier work-life balance.

One such solution is Co-Founder Ai, a cutting-edge webapp designed to assist startup founders in managing stress and maintaining mental well-being. By providing tools for mindfulness, connecting with private equity companies and angel investors, and facilitating a community of support among yCombinator companies and other VC-backed startups, Co-Founder Ai empowers entrepreneurs to thrive both personally and professionally. Whether you’re seeking investment opportunities near you or looking to start a startup with the right support system, Co-Founder Ai is your partner in navigating the challenging yet rewarding journey of entrepreneurship.

Ultimately, addressing mental health challenges is not just beneficial for the individuals involved but is also crucial for the sustainability and success of startups. By fostering environments where founders can seek help and balance their intense work schedules with personal well-being, the startup ecosystem can continue to innovate and grow without sacrificing the health of its most valuable contributors.

Source: @2012 MarketingSherpa Website Optimization Benchmark Survey
Methodology: Fielded April 2012, N=167

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