Startup Snapshot, a think tank uncovering the unspoken realities of the entrepreneurial ecosystem, has released its latest report, The Untold Toll (Part 2): Navigating Stress, Wellbeing, and Burnout in Startup Teams.
The emotional and mental state of startup teams has emerged as one of the most overlooked drivers of company performance. Startup Snapshot illuminates the unseen side of startup life through global data collected from startup employees. It’s the first study of its kind, and the findings are candid, revealing, and deeply human.
The startup grind is taking a heavier toll than expected. Only 10% of employees anticipated that startup life would harm their mental health, yet 80% say it has. Burnout affects 50% of employees, and 52% report anxiety, surpassing even the rates reported by founders themselves.
Founder stress quietly cascades through the organization. While only 10% of founders openly share their emotional challenges with their team, 57% of employees say they regularly notice signs of founder stress through tone, energy, and facial expressions.
This unspoken tension shapes culture and affects how safe and stable employees feel. Teams led by highly stressed founders report 16% lower work wellbeing, 14% higher burnout, and 16% lower psychological safety.
The most significant stressor for employees isn’t workload or pay, but uncertainty about what’s happening in the startup. Yet only 18% say their founders are fully transparent about the company’s challenges.
Transparency directly affects employee performance. Employees working under transparent, communicative leaders experience 19% higher work wellbeing and 26% lower turnover intention. When people understand what’s happening and why decisions are made, they feel secure, valued, and connected to the journey.
The research makes it clear: Founders set the tone for stress and well-being across their startups. When leaders neglect their own mental health, that stress spreads to employees, driving burnout, disengagement, and long-term cultural damage. Startup Snapshot will continue to investigate the emotional and psychological landscape inside startups. If you want to be part of this dialogue, reach out to yael@startupsnapshot.com.