Founder Mental Health: 10 Tips for Fundraising

The Rising Focus on Entrepreneurial Mental Health

Discussions surrounding entrepreneurs’ mental health and stress management gained prominence during the pandemic. However, for many experienced founders, the subject remains a sensitive one. As the world transitions towards a new normal, founders, investors, and mental health professionals are questioning whether prioritizing mental wellbeing should be a consideration now, even if it wasn’t previously.

The answer is affirmative. The need was present even before the pandemic’s onset. A significant driver of mental health challenges among entrepreneurs is their inherent willingness to embrace risk.

The Vulnerability of Risk-Taking

“Entrepreneurs introduce considerable vulnerability into their professional lives, and this, coupled with the necessary risks they undertake, can be amplified when those risks don’t yield the desired results,” explains Michael Freeman, a clinical professor of psychiatry at the University of California San Francisco School of Medicine and founder of Econa. “Given that most ventures don’t succeed, they become more susceptible to experiencing mental health symptoms and entering a negative cycle. Conversely, success can also present a unique set of mental health hurdles.”

Therefore, how can we proactively address these issues and equip entrepreneurs with the tools to strengthen and preserve their mental resilience, especially during challenging fundraising periods?

Prevention and Awareness: A Proactive Approach

The solution lies in prevention and awareness. Freeman emphasizes that prevention involves destigmatizing mental health differences in entrepreneurship, recognizing and celebrating mental health strengths, and adopting a lifestyle focused on mitigating potential downsides.

“Just as with many medical concerns, preventative measures are far more effective than reactive treatments,” Freeman states. “Entrepreneurs aiming to safeguard their mental health should begin with a lifestyle risk factor assessment.”

Five Pillars of Entrepreneurial Mental Wellbeing

Freeman outlines five key strategies for entrepreneurs to support their mental health. (If you or someone you know is struggling with hopelessness or depression, please reach out to the National Suicide Prevention Hotline at 800-273-8255.)

• Prioritize Sleep. Adequate sleep is crucial for optimal brain function and maintaining energy levels throughout the day. Allowing both mind and body to recover has a significant preventative effect.
• Engage in Regular Exercise, Including Sweating. Entrepreneurs should aim for at least 45 minutes of daily exercise, incorporating activities that induce sweating twice a week. This not only benefits physical health but also enhances executive functioning, improving focus and emotional regulation.
• Cultivate Friendships Outside of Business. Entrepreneurship can be isolating. Maintaining a small, engaged circle of friends and loved ones, separate from work, provides essential support during challenging times.
• Maintain a Healthy Diet. Many entrepreneurs experience financial constraints, but sacrificing nutrition for convenience is detrimental to cognitive function and overall health.
• Address Mental Health Concerns Promptly. Delaying attention to mental health issues can lead to more severe consequences, impacting personal relationships, work performance, and even business outcomes.

Understanding and Addressing Systemic Stressors

Awareness involves recognizing factors that can exacerbate stress and hinder fundraising success, and then planning accordingly. These factors include pre-raise financial stability, health history, gender, race, industry biases, institutional barriers, and citizenship status.

“Entrepreneurs of color, immigrants, and women are acutely aware of systemic barriers,” Freeman notes. “These challenges can significantly impact mental health during fundraising. Individuals from marginalized groups face unique obstacles, both generally and from a mental health perspective.”

The Weight of Representation

Kerry Schrader, co-founder of SaaS platform Mixtroz, understands these pressures firsthand. Despite successfully raising over a million dollars with her daughter Ashlee Ammons, the burden of potentially being among the few Black women to achieve this milestone was immense.

“We released ourselves from the pressure of being the 37th and 38th Black women to raise over $1 million,” Schrader explains. “We stopped worrying about being a symbol of failure for other Black women if we didn’t succeed. We focused on building a profitable business and hoping for the same understanding that many white male founders receive when they fail: another chance and more funding.”

Strategies for Mental Health During Fundraising

Schrader found limited resources on managing mental health during fundraising, leading her and her daughter to experiment with various methods. Based on their experience, here are five additional strategies:

• Seek Professional Counseling or Therapy. Therapy is increasingly viewed as a preventative measure for thriving, rather than a reactive response to overwhelm.
• Establish an Exit Strategy. Setting criteria for when to pivot or end the business can alleviate pressure and provide a sense of control.
• Leverage Your Team. Delegate tasks and rely on your team to support both the business and your wellbeing.
• Embrace Flexibility. Be prepared to adapt your plans as needed, recognizing that pivots are a common part of the entrepreneurial journey.
• Define Your Boundaries. Know your limits and be willing to decline unfavorable terms that compromise your mental health.

If you or someone you know is feeling hopeless and depressed, please call the National Suicide Prevention Hotline at 800-273-8255.