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Burnout is a silent killer in the startup world. The pressure to scale, raise funding and deliver results makes it easy for founders to overextend themselves until they hit a wall. A 2024 survey of 156 founders revealed more than half (53%) suffered from burnout within the past year, The impact of this translates to the business too. In 2021, a study from CB Insights found that 5% of startups fail because of burnout, and the real number is likely higher when considering indirect causes like poor decision-making and team mismanagement.
Running a high-growth startup usually means working relentless hours, juggling global teams and facing constant pressure from investors and competitors. As a former founder, I personally fell victim to burnout traps. Now, as an investor working with dozens of startups, I see the same patterns repeat themselves.
But burnout is far from the inevitable trade-off to the high-stakes startup life it’s being perceived to be. In fact, it’s usually triggered by a slew of avoidable patterns and decisions. Here’s how to protect yourself and your business from the spiraling impacts of burnout.
Related: How to Spot Entrepreneurial Burnout (Before It’s Too Late)
1. Stop treating every decision like a crisis
Many founders fall into the trap of treating every issue as urgent, responding to each challenge with the same level of intensity. But not all fires are worth running toward.
The best leaders conserve decision-making energy, focusing only on the high-impact choices that move the company forward. Getting caught up in low-stakes distractions is a sure-fire path to exhaustion and inefficiency.
For this reason, Amazon’s Jeff Bezos popularized the “Type 1 vs. Type 2 decision-making” framework:
- Type 1 decisions, or one-way door decisions, are irreversible and high-stakes. These require deep consideration.
- Type 2 decisions, or two-way door decisions, are reversible and low-risk. These should be made quickly and delegated.
He famously says: “Most decisions are two-way doors…” and that “Two-way door decisions should mostly be made by single individuals or by very small teams deep in the organization. One-way door decisions are the ones that should be elevated up to the senior most executives who should slow them down and make sure that the right thing is being done.” Terming himself as the Chief Slowdown Officer for such moves.
Keep in mind: If you’re treating every decision like a Type 1, you’ll likely be overloaded. Instead, ask yourself: Will this matter in six months? If not, delegate it or move forward quickly.
2. Pay yourself a salary that actually sustains you
Too many founders underpay themselves in the early years, believing it’s a sign of commitment. Some even take no salary at all, hoping that equity alone will justify the sacrifice. But working for free isn’t sustainable.
A study by Pilot found that 9% of startup founders took no salary in 2024, and those who did earned an average of $150,000 per year. That’s far below what non-founder executives make. Under-compensation creates stress, forces founders to take on financial risk and ultimately increases the likelihood of burnout.
The founders who last are the ones who set salaries that reflect their responsibilities while leaving room for long-term growth. If your board pushes back, frame the discussion around retention and long-term company stability.
3. Build systems to protect from founder over-dependency
Many founders operate as the bottleneck for every major process, believing their direct involvement ensures quality. In truth, it’s probably stalling company growth.
At Vungle, I saw that our best salespeople consistently outperformed others. Instead of making them handle every major deal, we recorded their calls, documented the strategies that yielded the best results and built a scalable sales script. This helped standardize success and led to a revenue jump from $850,000 to $15 million in one year. And the biggest win here is that our massive growth happened without overloading top performers.
Whether it’s sales, hiring or product development, build repeatable processes so that your company can scale without you needing to control every decision. The best leaders are usually those ingenious and efficient enough to design systems that function without their constant input.
Related: 3 Reasons Why You Need a Team-Empowered Company To Scale Your Business
4. Choose investors who actually have your back
The wrong investors will drain your energy just as quickly as the wrong hires. Some founders make the mistake of taking capital from anyone willing to write a check, only to find themselves stuck with VCs who prioritize short-term gains over long-term success.
In my experience, the best investor relationships feel like partnerships, not transactions. At Blue Field Capital, I always advise founders to vet investors as much as they’re vetting you. Before signing a term sheet, ask yourself:
- Will this investor support me during difficult times, or will they pressure me to make short-sighted decisions?
- Do they have a track record of backing founders through multiple ventures, or do they treat each investment as disposable?
- Will they advocate for fair compensation and sustainable company-building, or will they push for aggressive cost-cutting at all costs?
Burnout doesn’t just come from overwork. It can also come from being surrounded by the wrong people. Choose investors who believe in you for the long run.
Founders who prioritize sustainability win in the long run
Burnout isn’t just bad for founders, it’s bad for companies. If you’re exhausted, distracted or financially stretched too thin, your business will suffer. If you want to last, stop thinking like a burnout-prone startup founder and start thinking like an enduring business leader.
