London-based Balderton Capital launched a Founder Wellbeing and Performance Platform, based on research among 230 founders as well as 20 years of experience investing in Europe’s top entrepreneurs.
The research interrogated the inevitable pressures start-up founders are under, and how best to optimise performance in a high-pressure environment. The research found that although pressure is unavoidable, putting in ever more hours isn’t always the way to unlock improved performance. Instead, a holistic approach – optimising factors such as sleep, nutrition, as well as personal and psychological support in place – is needed to boost performance. Furthermore, the research showed a clear role for VCs to offer greater support and resources.
Some key findings indicated that 82% of founders believe that working long hours is an inevitable part of being an entrepreneur. 71% say that entrepreneurs are expected to constantly prioritise working over investing time in their own wellbeing. 83% of founders feel that, past a point, there are diminishing returns from simply putting in more hours. And 90% of founders agree that the pressure entrepreneurs put on themselves often drives them to constantly work very long hours.
“Starting and growing a business is hard, even more so when the economic landscape is uncertain and challenging. However, the historic approach of simply working harder and putting in more hours no longer makes sense. Rather than resulting in more success, Balderton’s research shows that, past a point, this can negatively impact decision making, creativity, and even result in burnout, which is cited as one of the top reasons that startups fail. By changing the dynamic and resetting expectations in the startup ecosystem, we can increase the chances of success, both for the founders and investors,” said Suranga Chandratillake, General Partner at Balderton Capital and a former co-founder and CEO of Nasdaq-listed blinkx.
Balderton believes that the startup ecosystem can learn from the way professional athletes train and strive for peak performance. They consider a number of factors, including physical health, nutrition, sleep and mental health. And they have a strong network and team of coaches supporting them. This is the structure on which Balderton based its Founder Wellbeing and Performance platform, available to all portfolio company founders.
The platform includes a health and fitness program, led by a team of clinicians; CEO Forums, bringing together small groups of CEOs in an intimate setting to discuss the personal and professional challenges they face as leaders; executive coaching; as well as events and resources to empower and educate founders to help them perform at their best.
“Founders, like elite athletes, are expected to manage stress and anxiety under pressure, sustain motivation, optimise concentration and communication skills, and contribute to a culture of accountability, while mitigating the risk of burnout, exhaustion and failure. Professional athletes do this by training their brain and central nervous systems to manage stress more effectively, by embracing uncertainty and discomfort, and prioritising self-care, especially when work-life balance feels impossible,” said Dr Simon Marshall, a former Professor of performance psychology and resilience at the University of California San Diego.
A thriving startup economy brings wider benefits to societies and economies, creating jobs and prosperity across Europe, but Balderton’s research suggests that there is currently a lack of investment in founder wellbeing, which could damage the chances of success in some companies. The stakes are high: in the UK alone, the tech ecosystem is valued at more than $1tn, with nearly 5 million people working in start-ups and scale-ups.
Bernard Liautaud, Managing Partner at Balderton Capital, said: “Investors have huge expectations of this generation of tech founders and more than ever we need innovative technology to solve some of the world’s biggest problems. However, there is a clear disconnect between what founders know helps them to produce the best results and what happens in practice. Frankly, when founders can not perform well their whole company suffers. This is why Balderton is taking steps to ensure every founder is supported and helped to grow both as a leader of their team and as a successful company builder. We think that is the way to achieve success as we invest for the future, building the European tech companies that will make an impact on global markets.”
