Activation Energy for Founders - Beyond Initial Checks

The Energy Required to Launch and Sustain a Startup

With increasing capital availability in the startup landscape, the necessary activation energy – the impetus – to not only launch a company but also to maintain leadership warrants consideration. This approach to scaling feels fundamentally more human than simply relying on financial investment, as venture capital doesn’t resolve all challenges and can, in some instances, even complicate a startup’s expansion.

Key Resources for Founders

I want to explore the concept of activation energy and the essential resources founders require to progress toward their objectives: time, a supportive community, and attention to mental well-being.

This discussion may seem less concrete than strategies for content marketing or sales, but I believe it’s crucial for supporting individuals – particularly those responsible for the livelihoods of others – as they grow alongside their businesses.

The Z Fellows Accelerator and Lowering the Barrier to Entry

Recently, I examined Z Fellows, an accelerator program that provides $10,000 to participants to dedicate a week to exploring their startup ideas. The program’s participants typically range in age from 20 to 25, demonstrating its success in encouraging potential first-time founders to take a calculated risk.

Founder Cory Levy attributes this appeal to the program’s minimal commitment: only one week away from their current employment is required. He explains that many established programs, such as Y Combinator or the Thiel Fellowship, demand significant life changes – like dropping out of school or committing full-time to an idea.

Levy advocates for a more measured approach: “Don’t make those big decisions yet; simply simulate what life would be like for a few days or a week. If you enjoy it, excellent; if not, there’s no significant downside.”

The Value of a Short-Term Experiment

While it may be optimistic to assume that seven days can fully transform someone’s life or provide a completely realistic glimpse into entrepreneurship, it’s not without merit. Founders face new challenges daily, and it’s unlikely a week will reveal the full scope of the entrepreneurial journey.

However, this opportunity shouldn’t be dismissed, as it could provide an aspiring founder with the crucial “aha” moment needed to believe in themselves. Activation energy requires an initial spark, and Levy believes lowering the initial commitment is a key step.

The Importance of Community

As I previously noted in 2021, “community extends beyond a single Slack group, event, or newsletter. It encompasses an aggregation of all these interactions, including customers, potential customers, and even one-time users.” I would add that a vital component of community is the feeling of being genuinely heard and understood by others.

Evolving Community Focus

Startups must broaden their focus on community beyond purely business-related contexts. It’s insufficient to simply create group chats based on shared interests; they should foster intimacy and transparency.

Gen Z VCs, a community spearheaded by Lerer Hippeau’s Meagan Loyst, exemplifies this approach, with dedicated Slack channels for accessibility discussions, constructive criticism, and celebratory announcements. However, the vibrancy of these spaces depends on active participation and a willingness to be open and honest.

Therefore, joining larger groups to find your core network, then transitioning to smaller, more intimate chats for unfiltered conversations, can be highly beneficial.

This isn’t a novel concept, but it’s often overlooked as startups secure substantial funding. The real challenge begins after receiving the investment: effectively allocating the capital and delivering on the vision that attracted the funding. In this context, founders should proactively cultivate communities that include not only partners and investors but also fellow entrepreneurs facing similar challenges. This support system can help navigate daily obstacles and even existential crises.

Prioritizing Mental Health

The surge in demand for executive coaching highlights the growing recognition of the importance of mental health support for entrepreneurs dealing with the pressures of their roles.

Growth in Mental Wellness Services

This year, BetterUp, an employee coaching platform, achieved a $1.73 billion valuation, followed by a $4.7 billion valuation months later. Furthermore, Ginger, a behavioral health company, was acquired by Headspace, a meditation app, demonstrating the need for diverse therapeutic options.

Employers are increasingly under pressure to offer mental health support as a benefit for employees experiencing fatigue and burnout, reflecting a broader, integrative approach to well-being.

A Holistic Approach to Startup Success

The pandemic underscored the importance of not taking anything for granted – whether it’s continued growth or future funding opportunities. Whether you are launching a new venture or scaling an existing one with venture capital, a consistent focus on time management, community building, and mental health support will benefit everyone within the startup, from the CEO to every team member.