A new Australian research initiative aiming to shed light on the often-overlooked mental health challenges facing founders and their relationship with investors, to address a critical knowledge gap in the startup community wants to know what you think.
Recent international studies have revealed a significant disconnect between founders’ mental health struggles and their willingness to discuss these issues with investors. A Startup Snapshot survey earlier this year found that only 10% of startup founders feel comfortable discussing their mental health struggles with investors.
That contrasts with findings from a US study by Silver Lining in 2022 which reported that 75% of business owners are worried about their mental health, with 56% diagnosed with anxiety, depression, or stress-related conditions.
James Meldrum, founder of Warp + Weft Consulting, who is conducting the research to get a better understanding of the issues, says there’s a clear disconnect.
“Founders face immense pressure, often leading to serious mental health challenges. Yet, the stigma surrounding these discussions, especially with investors, creates a damaging silence,” he said
While international studies highlight the growing prevalence of mental health issues among entrepreneurs, there is limited data specific to Australia. This gap is particularly pronounced for founders with external investors such as VCs and private equity.
Meldrum believes there’s a clear need for evidence-based insights to understand the drivers.
“We hear anecdotal accounts of mental health struggles in the startup community, but without robust data, it’s challenging to create meaningful solutions,” he said.
“This survey will delve into the challenges founders face, their barriers to seeking support, and how these issues affect personal and professional relationships.”
The research undertaken by Warp + Weft will investigate the relationship between founders and investors, exploring the communication barriers that prevent open discussions about mental health and examining potential ways investors can support founder wellbeing.
Meldrum understands from the front line as cofounder of Nourish Foods, a multi-million-dollar FMCG food business acquired last year
“I’ve experienced first-hand the toll of starting and growing a business can have on mental health, both for myself and my co-founder. Many founders endure similar struggles, often in isolation,” he said.
“The pervasive ‘fake it till you make it’ culture and relentless ‘crushing it’ narratives obscure the real challenges many founders face,” Meldrum added. “This research is an important step toward breaking down stigmas, encouraging more open conversations, and developing actionable solutions for a healthier entrepreneurial ecosystem.”
Warp + Weft is seeking both founders and investors to participate in an anonymous, short 5-6 minute survey, with results to be published early next year.
Founders can contribute their insights here.
Investors can share their perspectives here.
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