The evolution of a founder: Forging resilience through adversity
This is cross-posted from the original article published on Forbes.
In 2018, I'm tens of thousands of dollars in credit card debt, frantically trying to get Percent off the ground. Fast-forward to 2022, and we're staring at a bank account with barely anything left and a $350,000 payroll looming in just days. Yet by 2023, we closed an oversubscribed series B round, found our product-market fit and saw our marketplace take flight. This roller-coaster ride is not an unfamiliar story.
There's been a lot of buzz about grit and resilience being the secret sauce of entrepreneurial success. When you're in the thick of it, however, wondering if you'll make payroll or if your last pitch will land, those words can feel futile.
As someone who's been through the startup gauntlet and back, here's an unvarnished look at the storms of entrepreneurship—steeped in my own experiences:
Resilience: More Than A Buzzword
Resilience isn't about never getting knocked down. It's about looking adversity in the eyes, getting back up, dusting yourself off and doing it over and over again.
In building Percent, I've had countless such moments. Sales leads ghosting us right before the finish line, fundraising that felt like being trapped in quicksand, key team members jumping ship at the worst possible moment—each of these setbacks is just another item on the never-ending founder's to-do list.
You might feel like Sisyphus, forever rolling that boulder up a hill, only to watch it roll back down. Here's the thing: There's no choice but to find the strength to keep pushing.
Finding Your Inner "Crazy"
The secret? An almost irrational belief in yourself and your vision. The kind of confidence that borders on delusion. The truth is if you falter, everyone around you will sense it. Investors will smell the fear. Our team will eye the exits, wondering if they hitched their wagons to the wrong rocket ship. Clients will sense your desperation from a mile away.
I'm not advocating for a robotic, emotionless approach, but you need to find a way to stoke that inner fire even when the world seems intent on dousing it.
Celebrate the small wins like shipping a feature or landing a lead—small reminders you're on the right path. It might seem trivial, but in the long, often lonely, journey of building a company, these small victories can be your lifeline.
Don't forget to look outside yourself. Lean on your family and friends. These are battles and emotions you shouldn't face alone. Your support network can provide perspective, emotional relief and often unexpected solutions. Embracing their support will make you a stronger, more well-rounded leader.
When Panic Strikes, Hit The Pause Button
There will be moments when anxiety threatens to consume you. In 2020, as the pandemic raged, we were a fledgling company facing an existential crisis. Investors were nervous, and the businesses we provided financing to were shutting down. The urge to panic was overwhelming, but giving into fear would've been our downfall.
Instead, we went back to basics, assessing the situation objectively and making decisions based on data and instinct. We meticulously reviewed each borrower, making tough calls based on their risk profile and ignoring external pressures. It was a trial by fire, but we emerged all the stronger for it. Had we panicked and gone with the knee-jerk reaction to completely pivot our business, we likely wouldn't even be here today.
Remember, most companies fail not from a single blow but from a series of uncorrected missteps.
Perpetual Scarcity, Perpetual Creativity
Being a founder means living in a perpetual state of scarcity; there's never enough money, people or time. It's tempting to see this as a curse, but you should embrace it as a catalyst for creativity. Scarcity drives innovation, forcing you to find solutions where others see roadblocks.
When the war in Ukraine broke out, we were in the middle of launching a new fundraising round. Suddenly, the market froze, and every conversation with VCs ended in almost immediate rejection. We had to wait six months for the market to stabilize, all while trying to keep the company afloat.
However, we didn't just sit back and hope for the best; we got creative. We tapped into our own platform to raise venture debt, giving us the breathing room we desperately needed. We called capital strategically to make payroll every 15 days. One foot in front of the other, one payroll cycle is its own problem in a vacuum that needs to be addressed, shutting out the rest of the noise.
In 2022 and 2023, with interest rates skyrocketing and tech valuations plummeting, we faced another seemingly insurmountable challenge to actually close this round that had dragged on for over a year. It took 475 conversations with 125 VCs to close our series B, but we did it (oversubscribed, too). We meticulously managed our cash flow, ensuring we never hit zero in the bank. When the Silicon Valley Bank crisis hit, we seized the opportunity to showcase our company's potential.
Luck and opportunity collide when it comes to startup success. You need to be positioned to capitalize on both and be in the right place at the right time—and in the right mindset—to see it when it comes your way.
Learning From The Past, Embracing The Uncomfortable
You're not alone on this journey. Countless founders have walked this path before you. Learn from their experiences. Read books, listen to podcasts, seek out mentors. The solutions are out there—recognize the patterns and adapt them to your own unique challenges.
Resilience and grit aren't innate traits; they're muscles you build through experience. Embrace discomfort, push your boundaries and learn from every setback.
In the world of startups, success and failure are two sides of the same coin—neither as shiny nor as tarnished as they first appear. Stay focused and hold onto your resolve. I'll see you on the other side.
