World Mental Health Day: The Role VCs Play in Founder's Mental Well-being Despite mounting mental health challenges, only 18.5 per cent of entrepreneurs are aware of mental health resources specifically tailored for them

Balancing mental health is not a new practice. If you go back in time, you will find several ancient systems and practices dedicated to mental well-being, although they may have been labeled differently but serve the same purpose. One such system is Ayurveda, the ancient Indian system of medicine, which extensively discusses mental health under the term "Manas Rog" (mental disorders). In Ayurveda, the mind (Manas) was considered as important as the body (Sharir) for overall health.

According to Ayurveda, mental health is achieved through a balance of the three Gunas (qualities): Sattva (purity, harmony), Rajas (activity, passion), and Tamas (inertia, darkness). An imbalance in these Gunas was believed to lead to various mental disorders.

Present lifestyles—shaped by modern technology, evolving economic patterns, and the rapid flow of information—have drastically changed our daily habits, leading to imbalances in both mental and physical health. This is increasingly evident among founders and entrepreneurs who are running back and forth in the highly competitive market and volatile economy.

A global study on entrepreneurs' mental health, conducted by the 'Founder Report', published in May 2024, revealed that entrepreneurs are experiencing high levels of stress, anxiety, and burnout associated with the pressures of running a business. According to the study, 87.7 per cent of entrepreneurs face at least one mental health issue, with high stress (45.8 per cent) and anxiety (50.2 per cent) being the most common.

The story of American computer programmer and entrepreneur Aaron Swartz is a poignant reminder of the impact of mental health struggles. Swartz, who suffered from ulcerative colitis and suicidal depression, once shared, "I have a lot of illnesses. I don't talk about it much, for a variety of reasons. I feel ashamed to have an illness. (It sounds absurd, but there still is an enormous stigma around being sick.) I don't want to use being ill as an excuse. (Although I sometimes wonder how much more productive I'd be if I wasn't so sick.)" Tragically, Swartz took his own life in 2013 at just 26 years old.

With increasing concerns about founder burnout and anxiety, the role that venture capitalists (VCs) play in supporting founders' mental health is gaining attention. This support is crucial not only for the well-being of founders but also for the long-term growth of startups and the sustainability of the investment ecosystem.

Harsh Gupta, Principal at Flourish Ventures, India, believes that there is a notable correlation between founder wellness and company performance. He explains, "Founders who prioritize their well-being are more likely to lead innovative, engaged, and productive teams, resulting in better financial outcomes and sustainable growth. This was especially true during the pandemic."

Sandesha Jaitapkar, CHRO/COO of Artha Group, emphasizes that 70 per cent of startups fail within the first two to five years, and founder burnout is a significant contributing factor. "From our experience, founders who demonstrate emotional resilience, a growth mindset, and the ability to stay focused despite adversity tend to lead more sustainable and adaptable companies," she says.

Jaitapkar also shares an important insight they've gained from working with founders: successful entrepreneurs must learn to detach their personal identity from the business. She explains, "It's essential for founders to treat their business as a separate entity with its own demands and dynamics, distinct from their own personality. This perspective shift allows them to think more strategically, make decisions with greater clarity, and adapt when necessary. We often encourage founders to step outside their emotional ties to the business and consider it objectively, which helps foster better leadership and decision-making."

According to the 'Founder Report', despite mounting mental health challenges, only 18.5 per cent of entrepreneurs are aware of mental health resources specifically tailored for them, highlighting a lack of support systems designed to address these concerns. Gupta stated that their firm focuses on supporting entrepreneurs' mental health globally by identifying key challenges through surveys and peer coaching circles, which help the firm and founders connect across regions and stages to better understand pressing issues. The firm also offers professional coaching and integrates founder well-being as a core element of their emerging markets CEO retreats. In the coming year, Gupta feels investors will actively support founders on their wellbeing journey, creating a space for open discussions about mental health.