In our Startup Snapshot Research The Untold Toll (Part 2): Navigating stress, wellbeing and burnout in startup teams, 66% of startup employees say they identify, or strongly identify, with their company. This deep sense of belonging fuels motivation and loyalty. Employees don’t just work for a startup, they become part of it. They celebrate its wins as their own, take criticism personally, and instinctively speak in “we” instead of “they.”
Yet this high level of identification can be a double-edged sword. While it drives passion, commitment, and a shared sense of mission, it can also blur the line between personal and professional identity. Setbacks at work can feel like personal failures, increasing stress and the risk of burnout.
To understand the psychology behind this phenomenon and how founders and leaders can balance passion with protection, we sat down with Moshe Levin, a serial entrepreneur who served as CEO of three Nasdaq-listed tech companies before becoming a managing general partner at leading venture capital funds.
Having led, chaired, and invested in numerous startups over the past four decades, Levin brings a uniquely balanced perspective on what it really means when employees “go all in,” and the responsibility founders carry when they do.
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LOYALTY
TO WHAT EXTENT DO YOU AGREE WITH THE FOLLOWING SENTENCE “I IDENTIFY WITH MY STARTUP”?
- 12% Disagree
- 21% Neutral
- 40% Agree
- 26% Strongly Agree
As both an investor and founder, does this number surprise you?
Moshe: No, it’s not surprising at all, because these are exactly the kind of people who choose to join startups. Startup employees are motivated not only by the product or the salary, but by what the company means. They join because they want to be part of a small group trying to make an impact in the world.
Most of them could probably earn more at large corporations, with greater job security and stability. But they choose the uncertainty of startups because they feel their contribution matters. They want to be part of something that’s changing the world, even in a small way.
That sense of belonging, of being a key part of a small team striving toward a shared mission, is a major element of their motivation. So no, I’m not surprised at all by the numbers.
Why do employees feel this way, even though they don’t own a large stake in the company like the founders do?
Moshe: There’s definitely a financial motivation to some extent. Early stage startup employees expect to receive options, and I think it’s important that they do, even a small amount. It helps translate their motivation into financial terms.
But at its core, it’s not about ownership. It’s about emotional involvement. Startup employees don’t want to feel like a tiny part of a huge machine. They want to be part of a close-knit team where everyone knows what’s happening, where progress and success are shared.
That sense of community and visibility doesn’t exist in big organizations. In startups, people feel their actions truly matter, and that emotional connection is what drives them more than anything else.
And do you see any risks when employees over-identify with the company? Or is it only a positive thing?
Moshe: There are definitely risks. On the surface, this kind of deep identification is exactly what every founder or CEO wants. And there’s a lot leaders can do to strengthen that feeling.
But the challenge is balance. When someone’s entire life revolves around the company, it can start to hurt other parts of their life, their relationships, their family, even their performance. Overpressure and stress builds up, and when that happens, people’s performance can actually decline.
I’ve experienced this myself. After I graduated from the Technion, I co-founded my first company. After two years of development, we had to travel to New York to install our product for our first client, American Express. At the time, I had two children. One was two and a half years old and the other was only three months old.
I stayed in New York for three months straight. There was no easy way to fly home for weekends like today. When I came back, my daughter was six months old instead of three. Looking back now, it’s crazy, it goes completely against any sense of balance we talk about today. But that was the culture, and it wasn’t just me. My employees came too. They were just as invested, just as committed, and they made similar sacrifices.
That’s the extreme side of identification- when dedication crosses into overextension. While companies want their employees to feel part of the group, they also need to protect their people from burning out. It’s about creating a culture where passion doesn’t come at the expense of personal balance.
Given how strongly employees identify with the startup, what does this mean for the way founders should lead, communicate, or deal with failure—especially when everyone takes it so personally?
Moshe: It takes a lot of thought and intentionality from the founder. This should be a top priority in how they manage the company.
First, founders need to treat employees as partners, not as subordinates. It’s not a corporate hierarchy where you don’t know or care about the person sitting at the far end of the office. In startups, you have to relate to each person on a personal level. Make them feel they’re truly part of the journey.
The second thing is transparency and communication. Employees who give that much of themselves expect to know what’s happening, how the company is doing, what challenges exist, what milestones are coming. When that transparency breaks down, the commitment of employees erodes.
And when it comes to failure or downturns in the startup, openness becomes even more important. In small teams, people always sense when things aren’t going well. Their imagination will often make the situation seem worse than it really is. So founders should share what’s going on, explain the problems honestly, and communicate how they plan to recover.
You don’t need to share every single detail, but you do need to share enough for employees to feel part of the situation, not just bystanders. When people understand the context and the plan forward, their sense of ownership and resilience actually grows. That transparency builds trust and it’s trust that carries teams through the lows.
Moshe Levin
Bio
Moshe is a high-tech veteran with 45 years+ experience as an entrepreneur, executive, and investor.
Moshe Levin
Bio
Moshe is a high-tech veteran with 45 years+ experience as an entrepreneur, executive, and investor.
