The first year of entrepreneurship is like navigating a minefield while wearing a blindfold, according to a startling metaphor used by investors and startup founders in recent months. A single mistake, such as a poorly chosen hire, a poorly considered change of direction, or a broken partnership, can cause the entire business to collapse overnight. The once-idealized “startup dream” now seems noticeably harsher due to wary investors, shorter funding cycles, and the psychological toll of constant uncertainty.
The founder of Concept Ventures, the biggest pre-seed fund in Europe, Reece Chowdhry, has witnessed this pattern repeatedly. His findings are strikingly obvious: He recently stated that founder conflicts are the primary cause of business failure in the first 18 to 24 months. That statement’s directness dispels the misconceptions that are frequently associated with startup culture. Human friction kills early ventures, not a lack of funding or innovation.
| Aspect | Detail |
|---|---|
| Primary Threat | Co-founder misalignment and early leadership breakdowns |
| Major Risk Period | The first 12 to 18 months after launch |
| Expert Voices | Reece Chowdhry (Concept Ventures), Paul Graham (Y Combinator), Roman Eloshvili (XData Group) |
| Survival Strategy | Problem-first mindset, emotional compatibility, and complementary skills |
| Failure Rate | Nearly 90% of startups collapse within three years; 21% fail in the first year |
| Reference | https://www.msn.com/en-us/money/companies/this-is-the-number-one-reason-companies-fail/ar-AA1tfWYX |
Chowdhry has a very unusual approach to investing. Long before a prototype is created, his company supports businesses at the concept stage. This indicates that 80% of his assessment is centered on the people rather than the product. He clarified, “We inquire about the co-founders’ familiarity with one another and whether they have shared significant experiences.” He even likens his method to relationship counseling, frequently conducting one-on-one interviews with founders to see if their narratives are consistent. He leaves if they don’t.
“If I asked them the New York Times’ dating questionnaire, would their answers match?” is his striking analogy. Although it sounds funny, there is a very serious message behind it. Establishing a business requires chemistry, perseverance, and mutual trust. Every flaw in that relationship is amplified during the first year, and as Chowdhry observes, “If there’s a crack, the pressure will find it.”
The power of alignment is demonstrated by the story of Eleven Labs, a voice AI company currently valued at over $3 billion. Chowdhry saw something unique when he met its co-founders, Piotr Dąbkowski and Mati Staniszewski: emotional equilibrium and domain obsession. With remarkable accuracy, they complemented one another as childhood friends who went on to become innovators. One was quick-thinking and instinctive, the other methodical and analytical. Because their partnership was founded on trust rather than convenience, it was remarkably successful.
According to Chowdhry, this dynamic characterizes the startups that make it through the minefield. Teams have a genuine chance of success if they can endure the emotional turbulence of the early months, when the product isn’t working, the investors are silent, and the bills are due. He frequently asserts that startups test human resilience in addition to business models.
Y Combinator co-founder Paul Graham has long repeated similar cautions. “They do to the relationship between founders what a dog does to a sock—if it can be pulled apart, it will be.” He once referred to startups as “pressure cookers for relationships.” His counsel has held up remarkably well. Solo founders still face disproportionate difficulties even in 2025. Building alone can be extremely stressful if you don’t have someone with whom to discuss choices, frustrations, and setbacks.
However, success is not assured by having several founders. As both Graham and Chowdhry note, the connection is more important than the number. Shared vision and complementary temperaments serve as emotional shock absorbers, averting panic in times of crisis. One founder may be the long-term planner, while the other bases choices on pragmatic considerations. Together, they keep things in balance, which is especially helpful when markets change or investors are hesitant.
The CEO of XData Group, Roman Eloshvili, expands on this conversation. He believes that having a “problem-first mindset” is crucial. He contends that too many startups prioritize excitement over necessity. “Identify a real, pressing problem instead of starting with a flashy idea,” he suggested. This method greatly lowers the distractions that cause burnout while maintaining team focus. It works incredibly well in volatile markets where aimless experimentation quickly depletes resources and morale.
The increasing number of entrepreneurs who are reconsidering how startups ought to function find resonance in Eloshvili’s philosophy. Teams can remain grounded and make decisions based on user needs rather than hype by concentrating on concrete issues. In addition to being incredibly effective, this approach also stabilizes founders emotionally by providing them with a sense of direction during the inevitable upheavals of early growth.
The emotional terrain of entrepreneurship is still delicate, though. Silent doubts, delayed salaries, and restless nights are common during the first year. The founders characterize it as a paradox—both thrilling and draining. “It wasn’t the product that failed—it was our friendship,” admitted one early-stage founder who recently shut down her business. Two months prior to the formal shutdown, she and her co-founder ceased communicating. She claimed that the silence hurt more than the actual loss.
These human costs are now being recognized by the startup ecosystem. Workshops on communication and mental health are now offered by accelerators such as Y Combinator and Techstars. In addition to financial mentoring, some venture funds have even started “founder therapy” sessions. Even though they are still small, these efforts show that emotional intelligence is becoming just as important in the startup process as financial literacy.
This represents a minor but important change for investors. A more comprehensive understanding of success is replacing the previous culture that exalted unrelenting hustle. Venture capitalists are discovering that outcomes can be predicted more precisely by founder chemistry than by business models. According to Chowdhry, “We invest in relationships, not ideas.”
The ramifications are not limited to startups. Though this new narrative adds realism, the culture of innovation has long been viewed as glamorous. It prioritizes purpose over vanity metrics and sustainability over speed. People are gradually coming to understand that entrepreneurship requires perseverance, empathy, and teamwork in addition to disruption.
This evolution is supported by the data. Conflicts between co-founders have caused a nearly 25% increase in startup failures over the last two years, according to Crunchbase. Emotional discipline, however, may be a competitive advantage, as evidenced by the faster-than-average scaling of startups that place a high priority on internal alignment. Clarity and trust are becoming the new currency of success in a volatile economy.
In the end, the first year continues to be a crucible—a time of extreme strain where hope and reality collide. Founders who view it as a battleground frequently burn out, while those who view it as a partnership marathon typically persevere. Despite its vividness, the metaphor of the minefield might be too gloomy. When handled carefully, with empathy, trust, and a common goal, it can also become a fertile ground where resiliency transforms shaky beginnings into enduring empires.
