Unicorn Companies' Tears

Author: Jamie Pride

Over the past twenty years, I have founded and funded many tech startups. During this time, I noticed the widespread emergence of a new phenomenon: startup failure has become an accepted and common occurrence in the business world. Its impact extends beyond mere financial loss for investors. This failure—which I have experienced multiple times throughout my entrepreneurial journey—has affected me, my family, and my colleagues in a real, profound, and personal way. While sitting at home, nursing my wounds after the failure of my last project, the idea of writing this book began to flirt with my imagination. Soon, this idea consumed me and turned into an obsession. I started talking to founders of some companies and was not surprised by what they told me. Many new founders I spoke with were lost and wandering aimlessly, while experienced founders were in a state of collapse and stress, overwhelmed by feelings of loneliness and isolation after being cut off from support. I decided to write a book about startup failure to share my experience in founding companies with other founders. I soon discovered that startup failure is deeply rooted in the entire ecosystem. There are many misconceptions and misapplications often presented about the idea of "failing fast" without deep consideration. The traditional approach of venture capitalists when facing failure is to place many bets, based on the idea that most startups fail, but a few turn into "unicorn companies" and achieve overwhelming success, generating immense profits that compensate for all losses. However, this approach is extremely destructive. The financial loss resulting from startup failures is generally known and understood, but the hidden aspect that many are unaware of is the human cost incurred by these failed startups. I have seen this dark side of startups: a survey reported that 94% of company founders have experienced mental health issues, with over 30% admitting to suffering from depression and 72% admitting to severe anxiety. Would you believe that founders are this exhausted?! But isn't founding startups supposed to be an enjoyable, exciting, and prestigious endeavor? Haven't we grown accustomed to seeing the smiles on the faces of successful startup founders whose pictures grace business newspapers when they achieve capital success or take their companies public? The "I can easily succeed" culture makes it difficult for founders to admit their struggles.