Startup failure reasons are long debated. Mark Phillips, Managing Partner of 11 Tribes Ventures, is no stranger to hearing about the struggles entrepreneurs face while building their businesses. Typically when we think of business failure, we automatically think of business problems; lack of market demand, insufficient cash, and mis-matched teams to name a few. It is true, these are reasons that businesses fail. Yet, in reality, many businesses also fail due to personal turmoil and challenges faced by entrepreneurs. This part is lesser known and rarely openly discussed.
One particular story Mark heard recently from a founder named Troy really struck a cord and Mark wanted others to hear it too. Thanks to Impact Foundation, Mark was able to share more about why startup failure is all too common and the source of breakdown much deeper—and more human—than one might think.
We believe that understanding startup challenges starts with hearing founder’s stories. Here at Kadence Group, we look forward to being part of a changing narrative around entrepreneurship — one that paves the way for authenticity, wholeness, long-term wellbeing, and business growth.
Why do startups fail?
It is a question that we as venture investors have asked ourselves countless times. If only we could identify a root cause – think of all the start-ups and founders we could help grow and scale!
But of course, identifying and treating the root cause has been a historically challenging task for investors. There is no one ‘right’ answer because businesses are built by people and no two are the same. And at the earliest stage, start-ups are led by one bold and brave individual, standing at the helm of every key decision: the founder.
What do we know about founders? For starters, they are some of the hardest working folks you’ll ever meet. They experience rejection constantly and continue to fight. They battle scarcity, sleepless nights, and against all odds build many of the businesses and brands we rely on most in everyday life. And most of all, founders deserve an approach to venture funding that truly cares for them as humans, not just the next great investment.
To figure out how to care for founders, we first need to hear their stories. We need to know the depth and breadth of the challenges they face – not just as business leaders, but whole people with difficulties and demands that span well beyond the workplace. What we believe you will find in the story below, and in many others, is that core issues of identity don’t go away when founders embark on their entrepreneurial journeys. With their personal value and worth tied up in business outcomes, many find it harder than ever before to keep their heads, and hearts, above water.
Want to keep reading? Click below to visit the Impact Foundation’s blog and access the entire article.