The Real Cost of Startup Life on Employee Wellbeing
Startups are fueled by ambition, speed, and vision. But behind the energy lies a harsher reality—employees are paying a steep emotional price. Long hours, relentless pressure, and the ripple effects of founder stress are taking their toll on wellbeing and resilience across teams. To uncover the true impact, we led the first global study on startup employee mental health. The result is a look into how stress spreads from the top down, and why emotional wellbeing is becoming a business imperative for companies determined to scale.
The startup grind takes a major toll on employee mental health
80%Of employees
Report an impact on their mental health
Startup employees suffer from one or more of the following
61%High stress
52%Anxiety
50%Burnout
17%Depression
10%Panic attacks
This wasn't what they signed up for
90%Of employees didn’t expect startup life to impact their mental health
Lack of transprency
Lack of transparency beats pay and workload as top stressor, but founders don't share
18%Of startup employees
Report their founders are completely transparent about the startup’s challenges
Support
Who do employees turn to for support? Family provides a warm shoulder to lean on, but leadership is not trusted
77%Spouse or family
27%Therapist or coach
15%Direct manager
4%HR
Founder dysregulation
THE FOUNDER’S STRESS IS CONTAGIOUS, SHAPING HOW EMPLOYEES FEEL, WORK AND COPE
14%Higher burnout for employees working under highly stressed founder
Information is key
Founder transparency isn't just a nice to have, it is the biggest predictor of employee wellbeing
Transparency from founders has a profound impact on the team. When employees understand what’s happening in the company, why decisions are made, and what challenges lie ahead, they feel more secure, valued, and included in the journey.
Our data shows a direct link: employees whose founders are more transparent report higher overall wellbeing, lower levels of burnout, and a reduced intention to leave. Transparency isn’t just a “nice-to-have”—it’s a critical driver of employee experience.
