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Israel’s Tech Boom: Unveiling the Hidden Costs

by Michael Brown
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The Hidden Struggles Behind Startup Success: Addressing the Mental Toll of the “Startup Nation” Mentality

Table of Contents

Beyond the headlines of prosperous exits and innovative technologies lies a less discussed reality: the profound personal cost borne by many startup founders. this article explores the growing need for mental health support within the high-pressure Israeli tech ecosystem.

gali bloch-Liran. 'Hi-tech glitters onyl on the outside.'
Gali Bloch-Liran. “Hi-tech glitters only on the outside.” (Photo: Ryan Frois)

The Rising Tide of Openness: Sharing the Unseen Realities

While the media often portrays entrepreneurs as confident and successful, a growing number are using platforms like LinkedIn to share their vulnerabilities and setbacks. This shift reflects a broader recognition within the tech industry of the emotional toll exacted by economic uncertainties, global events, and the inherent pressures of building a company. The need for a safe space to process these experiences and rebuild is becoming increasingly apparent.

The Need for Specialized Coaching in IsraelS Tech Sector

Executive coaching is a well-established practise globally, assisting leaders in navigating challenges like layoffs, burnout, and workplace dynamics. However, in israel, where the tech industry is a primary economic driver, there’s a specific demand for coaching tailored to the unique pressures of the technological-business landscape.This includes fostering awareness of the personal sacrifices often associated with the “Startup Nation” mentality.

According to a 2023 study by Startup Genome,founder well-being is a critical factor in startup success,with companies led by founders with high well-being scores being considerably more likely to achieve key milestones.

A Wake-Up Call: The Story of Alon Huri

Alon Huri, co-founder of Next insurance, recently shared a powerful personal story about his health struggles on social media and on Gali Bloch-Liran’s podcast.Huri recounted suffering a heart attack while driving, a result of years of neglecting his health due to the relentless demands of building his company. He had postponed routine checkups, maintained a poor diet, and avoided exercise, all sacrifices made in the pursuit of startup success.

The Illusion of Success: Recognizing the Hidden Costs

The pursuit of startup success often masks a darker reality. Everything glitters in this world, but only on the surface, observes Bloch-Liran. She recalls mentoring a young, driven entrepreneur who proudly proclaimed his disregard for sleep, nutrition, and exercise. While such extreme dedication might seem effective in the short term, it’s ultimately unsustainable.

Bloch-Liran elaborates, So, maybe at certain points in life, and for a very short time, you can get away with that… In the startup world, speed and total commitment have value, and they demand exceptional resources. But at some point, you hit a stop sign in the form of burnout, exhaustion, or your body is simply shutting down, whether in the form of anxiety attacks or as Alon described, a heart attack.

Heart attack

Beyond Physical Health: The broader Impact on Well-being

The consequences extend beyond physical health.Startup founders frequently enough grapple with divorce, social isolation, and mental breakdowns consequently of their all-consuming dedication. As a notable example, Shaul Olmert has openly discussed the loneliness, marital strain, and sense of self-loss he experienced during Playbuzz’s rapid growth. Similarly, jonathan Matus, CEO of Fairmatic, suffered a debilitating collapse at a major conference, highlighting the potential for extreme stress to manifest physically.

Bloch-Liran emphasizes the long-term consequences: You can’t run blindly and obsessively for a decade without paying a price.

The Exit Myth: the End of the Road or a New Beginning?

Many founders believe that achieving an exit will finaly bring them relief, assuming the discomfort is only temporary. However, Bloch-liran cautions that even successful exits can be traumatic. Even good things can trigger trauma, even the exit itself, she explains. If you cash out in a massive deal at a young age, feeling that luck was on your side, and suddenly find yourself managing, say, $20 million, it shifts your entire worldview and changes your relationships. I know several entrepreneurs who made big exits and then fell into depression. The ‘baby’ they nurtured for years is suddenly gone.

Furthermore, not all exits are positive experiences. Some entrepreneurs repeatedly pursue exits, fully aware of the personal toll, simply as they lack alternative paths.

Gali Bloch-Liran: A Unique Viewpoint on Entrepreneurial Well-being

Gali Bloch-Liran’s journey to becoming an executive coach for entrepreneurs took a different path. Her experiences working with startups at SOSA, a startup innovation hub, exposed her to the challenges founders face behind the scenes.

As a marketing executive, I used to sit on the rooftop in South Tel aviv, having conversations with countless entrepreneurs to prepare them for meetings with investors and potential clients… Some of those startups were later acquired, and others collapsed.But it was during those rooftop talks that they opened up about the challenges they were experiencing, such as loneliness, tensions between co-founders, marriages that fell apart while they were consumed by their startups, and balancing parenthood with entrepreneurship, she recounts.

These experiences, combined with her background in psychology and business, led her to launch The Human Founder, an executive coaching firm dedicated to supporting entrepreneurs’ mental and emotional well-being.

I was fascinated by the entrepreneurs around me. They were incredibly smart and performance-driven, but at the same time, I sensed they were disconnected from their emotions, which served as a survival mechanism to help them get through the journey. That’s where I realized I could step in.

The Human founder: Promoting Emotional Awareness in the Startup world

As launching the Human Founder in 2018, Bloch-Liran has become a leading voice in advocating for greater emotional awareness within the Israeli startup ecosystem. In 2021,she expanded her reach with a podcast of the same name,featuring interviews with prominent figures in the industry.

Israel’s military-driven culture fosters a strong sense of ego, making entrepreneurs less inclined to discuss emotions. maybe after October 7, this will start to change.

Beyond her coaching practice and podcast,Bloch-Liran mentors students at Reichman university’s Zell Entrepreneurship Program and founders participating in Google for Startups programs,further amplifying her impact on the next generation of Israeli entrepreneurs. She has also advised startups such as Ludeo, Finout, Agora, and OpenWeb.

The Human Side of startups: Navigating Leadership and Loss

The Entrepreneurial Tightrope: Balancing Growth and Personal Well-being

the journey of a startup founder is often portrayed as a relentless pursuit of innovation and market dominance. However, the personal toll this journey takes is frequently overlooked. The transition from a small team operating out of a garage to a global enterprise with thousands of employees demands important personal growth from its leaders. This is a critical juncture where many entrepreneurs seek guidance.

one such example is Monday.com, a company that began its journey in 2012. As the company scaled,the co-founders,Eran Zinman and Roy Mann,recognized the need to adapt their leadership structure. According to one expert,”As the company expanded,they realized they needed to adjust their leadership structure. Instead of the traditional founder dynamic of CEO and CTO or CPO, they transitioned into a co-CEO model, overseeing all aspects of the business together.” This shift highlights the evolving demands placed on founders as their companies mature.

Eran Zinman and Roy Mann,the founders of Monday.com
Monday.com co-founders Eran Zinman and Roy Mann ‘Transitioned into a co-CEO model’ (Photo: Netanel Tobias)

This constant evolution is part of what makes entrepreneurship so compelling. That’s also the magic of entrepreneurship, it’s a constant journey of learning and growth. The sense of vitality it gives you is incredible.

The Weight of Expectations: Ego, Emotions, and the Need for Empathy

In high-pressure environments, particularly those fostered by military service, individuals may develop a strong sense of self-reliance, sometimes at the expense of emotional vulnerability. This can be a challenge for entrepreneurs who need to connect with their teams and investors on a deeper level. As one expert notes, “Maybe after October 7, this will start to change. We might finally recognise that empathy and soft skills are essential for leadership, both in business and beyond.” the recent global events have underscored the importance of empathy and emotional intelligence in leadership roles.

The ability to openly discuss emotions and vulnerabilities is crucial for effective leadership. though,some founders might potentially be hesitant to seek guidance,particularly if they question the expertise of the advisor. Some question whether someone, not having built a startup themselves, can truly understand their challenges. To that, one responds with an analogy: A male gynecologist has never given birth either, but experience and knowledge make all the difference.

Navigating Tragedy: Loss, Resilience, and Redefining Life’s Narrative

Life’s unexpected tragedies can profoundly reshape one’s perspective and priorities. Experiencing loss, especially under traumatic circumstances, can cast a long shadow, altering the narrative one tells about their life. As one individual poignantly describes, There’s a story you tell yourself about your life, and then, out of nowhere, that story is covered by a cloud that never disappears. It’s part of me, I didn’t choose it. I don’t see it as a stain, just as something that is now woven into my life story.

The sudden loss of a loved one can trigger a cascade of complex emotions, including confusion, anger, and guilt.it forced me to confront death, loss, and the understanding that he made the choice himself. It was an unnatural death, one recounts. I stayed with so many questions unanswered. There was confusion, anger, but how can you be angry at someone who isn’t here anymore? And guilt – how did we not see it? And there was also compassion, because you try to imagine the kind of pain that makes people take their own lives. He truly must have felt there was no light at the end of the tunnel.

Anxiety
Photo: Shutterstock

These experiences can lead to a deeper understanding of the hidden struggles others may be facing.One individual reflected on their father’s experience as a combat officer,stating,Only after his death did I understand the depths of the sadness that was reflected in his eyes,and that he wasn’t just handsome and a hero. The weight of responsibility and the pressure to remain strong can mask underlying pain and trauma.

The impact of such experiences can be far-reaching, altering one’s perception of family and the world. It changed the story of everything, says one individual. I was the one with the most ‘normal’ family, growing up in Zikhron Ya’akov, with a view of the sea, a father who was an engineer, and a mother who was a school principal. And then suddenly, a shadow was cast over everything.

The Importance of Word-of-mouth and Trust in Seeking Guidance

Many entrepreneurs rely on personal recommendations when seeking guidance. Most entrepreneurs come to me through word of mouth. Investment funds sometimes recommend a founder to apply to me, but that can be a delicate issue, says one expert.The nature of the recommendation can influence the founder’s perception and willingness to be open. If a VC recommends an entrepreneur to come and speak with me, the founder might wonder: ‘Is this mandatory? Is this just a recommendation? Can I really speak openly?’

The Startup Therapy session: Addressing Founder Conflicts and Personal Sacrifices

Exploring the intense emotional dynamics within startups and strategies for navigating common challenges.

From Personal Grief to Professional Guidance: A Journey of Understanding

The high-pressure habitat of a startup can often mirror the complexities of personal relationships, particularly those seen in couples therapy. But understanding these dynamics can be the key to success.

One individual, drawing from profound personal experience, now guides startup founders through these turbulent waters. Her journey began with a delayed understanding of her father’s struggles as a veteran.

It wasn’t until years after his passing that the full weight of his experiences became clear. As she recalls,A decade after his death,we held a gathering with all of my father’s closest friends from the army. I wholly broke down hearing stories about what he had to carry within him all those years. This revelation sparked a desire to help others navigate their own emotional burdens.

The impact of that gathering was significant.The event brought together 40 veterans, all in their 70s, who suddenly opened up to each othre about their private struggles with post-trauma. But their stories about their pain and emotions stayed with me long after. This experience fueled her commitment to supporting others facing intense emotional challenges.

Driven by a desire to make a difference,she explains,I couldn’t save my father,but I wanted to take what I’ve learned and use it to help others. This sentiment underscores her approach to guiding startup founders through their own unique trials.

Startup Dynamics: A mirror to Couples Therapy

When working with startup founders, the emotional landscape often resembles that of couples therapy. Issues surrounding finances, family obligations, and personal self-worth are amplified by the demanding nature of startup life. these pressures can create significant friction between co-founders.

The initial assessment is crucial. It really is like couples therapy, she explains. The first thing I ask them is: ‘Are you willing to do whatever it takes to make this work? Are you ready to invest time, money, and energy in this process? Because if not, there’s no point’. This upfront honesty sets the stage for a realistic and committed approach.

The potential consequences of founder conflict must also be addressed. Do you realize that if one of you leaves, the startup might not survive, or at the very least, it could spiral and be delayed? This question highlights the high stakes involved and encourages founders to consider the broader impact of their decisions.

Bridging the Divide: Common sources of Founder Conflict

Divergent backgrounds and expectations often fuel disagreements among founders. For instance, one founder might possess the financial security to pursue long-term growth, while another faces immediate financial pressures. This disparity can lead to conflicting priorities and strategies.

As she notes,The challenges often stem from fundamental differences. For example, one founder may come from a stable background and have the patience to build a company gradually, while the other might not have that luxury. I always ask: How long can you afford to live the all-in startup fantasy? Or do you have mortgage obligations and financial pressure? These questions delve into the practical realities that can strain even the strongest partnerships.

Moreover, differing management styles can create friction. One founder might come from a corporate environment, while the other operates with a more flexible mindset. Sometimes these differences can be bridged, and sometimes they can’t. This highlights the importance of understanding and accommodating diverse approaches to leadership.

Underlying motivations: The Root of Disagreement

Beyond background and style, conflicting motivations can also drive a wedge between founders. One founder might prioritize a fast exit strategy, while the other is committed to building a lasting enterprise. These differing visions can lead to strategic disagreements and power struggles.

According to her, Conflicts often stem from differing motivations. One founder might want a quick exit, while the other is resolute to build the company for the long haul.There are also teams with imbalanced dynamics where one founder, frequently enough the idea’s originator, is more dominant, or one has a larger equity stake than the other. These imbalances can create resentment and undermine collaboration.

Parenting and Startups: Finding a Lasting Rhythm

Founders who are also parents face unique challenges in balancing their professional and personal responsibilities. The demands of a startup can easily encroach on family time, leading to stress and burnout.A practical approach to time management is essential.

Her advice for these individuals is pragmatic: For founders who are also parents, I would advise not to aim for daily balance but rather a weekly one. Over the course of a week, it’s easier to map out time for the kids, the board meetings, and the team. On any given day, you might not fit everything in, but across a week, you can. This strategy emphasizes flexibility and realistic expectations.

Here are two relevant “people Also Asked” questions for the provided article:

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The Hidden Struggles Behind Startup Success: Addressing the Mental Toll of the “Startup nation” Mentality

Beyond the headlines of prosperous exits and innovative technologies lies a less discussed reality: the profound personal cost borne by many startup founders. This article explores the growing need for mental health support within the high-pressure Israeli tech ecosystem.

Gali Bloch-Liran. 'Hi-tech glitters only on the outside.'

Gali Bloch-Liran. “Hi-tech glitters only on the outside.” (Photo: Ryan Frois)

The Rising Tide of Openness: Sharing the Unseen Realities

While the media often portrays entrepreneurs as confident and prosperous, a growing number are using platforms like LinkedIn to share their vulnerabilities and setbacks. This shift reflects a broader recognition within the tech industry of the emotional toll exacted by economic uncertainties, global events, and the inherent pressures of building a company. The need for a safe space to process these experiences and rebuild is becoming increasingly apparent.

The Need for Specialized Coaching in Israel’s Tech Sector

executive coaching is a well-established practice globally, assisting leaders in navigating challenges like layoffs, burnout, and workplace dynamics. However, in Israel, where the tech industry is a primary economic driver, there’s a specific demand for coaching tailored to the unique pressures of the technological-business landscape.This includes fostering awareness of the personal sacrifices often associated with the “Startup Nation” mentality.

According to a 2023 study by Startup Genome, founder well-being is a critical factor in startup success, with companies led by founders with high well-being scores being considerably more likely to achieve key milestones.

A Wake-Up Call: The story of Alon Huri

Alon Huri, co-founder of Next Insurance, recently shared a powerful personal story about his health struggles on social media and on Gali Bloch-Liran’s podcast. Huri recounted suffering a heart attack while driving, a result of years of neglecting his health due to the relentless demands of building his company. He had postponed routine checkups, maintained a poor diet, and avoided exercise, all sacrifices made in the pursuit of startup success.

The Illusion of Success: Recognizing the Hidden Costs

The pursuit of startup success often masks a darker reality. “Everything glitters in this world, but only on the surface,” observes Bloch-Liran. She recalls mentoring a young, driven entrepreneur who proudly proclaimed his disregard for sleep, nutrition, and exercise. while such extreme dedication might seem effective in the short term, it’s ultimately unsustainable.

Bloch-Liran elaborates, “So, maybe at certain points in life, and for a very short time, you can get away with that… In the startup world, speed and total commitment have value, and they demand exceptional resources.But at some point, you hit a stop sign in the form of burnout, exhaustion, or your body is simply shutting down, whether in the form of anxiety attacks or as Alon described, a heart attack.”

Heart attack

beyond Physical Health: The Broader Impact on well-being

The consequences extend beyond physical health.Startup founders frequently grapple with divorce, social isolation, and mental breakdowns as an inevitable result of their all-consuming dedication. As a notable example, Shaul Olmert has openly discussed the loneliness, marital strain, and sense of self-loss he experienced during Playbuzz’s rapid growth. Similarly,Jonathan Matus,CEO of Fairmatic,suffered a debilitating collapse at a major conference,highlighting the potential for extreme stress to manifest physically.

Bloch-Liran emphasizes the long-term consequences: “You can’t run blindly and obsessively for a decade without paying a price.”

The Exit Myth: the end of the Road or a New Beginning?

Many founders believe that achieving an exit will finally bring them relief, assuming the discomfort is only temporary. However, Bloch-Liran cautions that even successful exits can be traumatic. “even good things can trigger trauma, even the exit itself,” she explains.”If you cash out in a massive deal at a young age, feeling that luck was on your side, and suddenly find yourself managing, say, $20 million, it shifts your entire worldview and changes your relationships. I know several entrepreneurs who made big exits and then fell into depression. The ‘baby’ they nurtured for years is suddenly gone.”

Furthermore, not all exits are positive experiences. Some entrepreneurs repeatedly pursue exits, fully aware of the personal toll, simply because they lack alternative paths.

Gali Bloch-Liran: A unique Viewpoint on Entrepreneurial Well-being

Gali Bloch-Liran’s journey to becoming an executive coach for entrepreneurs took a different path. Her experiences working with startups at SOSA, a startup innovation hub, exposed her to the challenges founders face behind the scenes.

“As a marketing executive, I used to sit on the rooftop in South Tel Aviv, having conversations with countless entrepreneurs to prepare them for meetings with investors and potential clients… Some of those startups were later acquired, and others collapsed. But it was during those rooftop talks that they opened up about the challenges they were experiencing, such as loneliness, tensions between co-founders, marriages that fell apart while they were consumed by their startups, and balancing parenthood with entrepreneurship,” she recounts.

These experiences, combined with her background in psychology and business, led her to launch The Human founder, an executive coaching firm dedicated to supporting entrepreneurs’ mental and emotional well-being.

“I was fascinated by the entrepreneurs around me. They were incredibly smart and performance-driven,but at the same time,I sensed they were disconnected from their emotions,which served as a survival mechanism to help

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