Startups are often portrayed as thrilling rocket ships, driven by visionary founders and fueled by ambitious teams. Yet beneath the promise of disruption lies a quieter story of strain.
In our latest report, The Untold Toll (Part 2): Navigating Stress, Wellbeing and Burnout in Startup Teams, the data reveals a striking pattern: startup employees report a higher emotional strain than founders themselves.
More than half (52%) of employees say they’ve struggled with anxiety since joining their current startup, compared to 37% of founders. Similarly, 50% of employees report symptoms of burnout, while only 36% of founders do.
This research follows our first Untold Toll report, which explored founder mental health. By examining both founders and employees, we can now see how the emotional challenges of the startup journey ripple through every layer of the organization.
The finding raises a fundamental question: Are employees truly suffering more—or are they simply more willing to acknowledge it? To better understand this phenomenon, we spoke with three experts in the Startup Snapshot network, each offering a different lens into this complex reality.
1.The Control Paradox
“High control and autonomy can offset high stress,” explains Dr. Michael Freeman, a psychiatrist and researcher specializing in entrepreneur psychology. “Founders report crushing demands, but because they steer the ship, the emotional toll is often less severe than what employees experience.”
Founders may work longer hours and carry greater financial risk, but they have one critical psychological buffer: control. The ability to make decisions, pivot directions, and influence outcomes provides a sense of agency, an antidote to anxiety.
Employees, on the other hand, live with the same volatility but far less control. They’re passengers on a high-speed journey, dependent on the founder’s choices, market tides, and investor moods. That lack of agency, Freeman notes, can amplify stress even when workloads are similar.
High control and autonomy can offset high stress. Founders report crushing demands, but because they steer the ship, the emotional toll is often less severe than what the employees experience.
Dr. Michael Freeman
Dr. Michael Freeman
2. The “Option to Quit” Dilemma
“When you look at high stress and anxiety, you always have to ask: against what payout?” says Tzahi Weisfeld, an ecosystem builder who has worked with hundreds of startups. “For employees, there’s always the question: is it worth it? High stress, high anxiety, high burnout, should I leave?”
Weisfeld describes a psychological divide rooted in choice. Founders often don’t have the option to quit, as their identity and livelihood are intertwined with the startup’s fate. To cope, they “shrink the story”, minimizing their stress because acknowledging it might threaten the mission itself.
Employees, however, have an escape hatch. When burnout intensifies, they face a constant internal dialogue about whether to stay or go. That ongoing evaluation can heighten emotional fatigue and create a sense of disconnection, even in high-performing teams.
When you look at high stress and anxiety, you always have to ask: against what payout? For employees, there’s always the question: is it worth it? High stress, high anxiety, high burnout, should I leave?
Tzahi Weisfeld
Tzahi Weisfeld
3. The Ecosystem Effect
“It’s part of a systemic issue,” says Annika Sten Pärson, investor and founder of The Inner Foundation. “We’ve built an ecosystem that celebrates grit and performance but overlooks the emotional reality beneath.”
Pärson points out that vulnerability, especially from founders, has long been equated with weakness. “When leaders can’t show vulnerability, that mindset trickles down. Employees mirror it, and soon you have a culture where everyone is performing strength rather than building trust.”
She envisions a healthier future where check-ins about team wellbeing become as routine as tracking churn or KPIs. “When LPs, VCs, and founders all treat mental health as an operational metric, not an afterthought, that’s when the ecosystem truly matures.”
It’s part of a systemic issue. We’ve built an ecosystem that celebrates grit and performance but overlooks the emotional reality beneath
Annika Sten Pärson
Annika Sten Pärson
A Shared Responsibility
The data makes one thing clear: mental health in startups is not just a founder issue, it’s an organizational one. The intense pace, blurred boundaries, and emotional stakes of startup life affect everyone in the orbit.
For founders, acknowledging that responsibility is the first step. Building a culture of openness, fostering autonomy, and normalizing conversations about wellbeing can transform stress from a silent burden into a shared, manageable reality.
Because in the end, the strength of a startup doesn’t only lie in its product or strategy, it lies in the psychological resilience of the people building it.
