A letter to founders who are burning out

By Willis Wee

12 September 2023

Dear founders,

I feel you. As founders, we're no strangers to the uphill battles, sleepless nights¹, and uncertain times. But in the face of an economic downturn, the challenges can feel overwhelming.

Yet it is also in moments of hardship that our true strength shines through. The tech winter is testing our resolve, forcing us to refine our strategies. (Goodbye, growth at all costs! 👋)

Capital isn't as readily available, and profitability is paramount. It's the bitter medicine that founders and our community needs to swallow in order to mature.

Another realization: VCs can't fund your business indefinitely - only satisfied paying customers can.

The pressure can be intense, and it's natural to feel discouraged. I do too, believe me. 😔

Lately, founders burning out and wanting to quit have become more common. Many founders in my circle, for example, are also new parents, adding to the stress².

But don't lose hope. The tech winter has been tough, but remember that the cold doesn’t last forever. Spring always follows, and the promise of renewal comes after the ice melts away.

Tech in Asia's cash-flow mistakes, layoffs, and recovery

More often than not, success doesn’t follow a straight path. Here's my journey:

🤦 2010-2012: I raised my seed round and boldly claimed, “Fundraising is easy. Who says solo founders can't succeed?” I was so wrong.

💸 2012-2013: I didn't know the difference between P/L (profit and loss) and cash flow, and I received a valuable lesson as a result. In a nutshell, P/L shows if a business is making or losing money over a specific period, but it doesn't account for when that money is received or spent. Tech in Asia nearly ran out of cash at one point - this experience was a defining moment in my personal growth.

🎢 2014-2016: Things were going well. Our burn rate was incredibly low, and we maintained financial discipline. Joining Y Combinator (YC) taught me how to build something that people truly want. Going through YC and spending six months in Mountain View, California, opened my eyes to a lot of realities.

😦 2016-2018: I got distracted and misapplied the lessons from my YC experience. We had to undergo restructuring and layoffs, making 2018 one of the most difficult years in TIA history.

😅 2019-2021: We regained our focus and returned to profitability. Without the trials of 2018, I doubt TIA could have weathered the trials brought on by the Covid pandemic.

🥶 2022-?: The tech winter persists, but we will endure and survive.

Survival is a badge of honor. I know, because TIA nearly died twice³. By pushing forward to make it, you’ll hone your skills, develop grit, and become more adept at adapting. This too shall pass, and surviving increases your chances of winning.

You'll emerge wiser and battle-tested - you could even inspire others⁴. Embrace the tech winter and its challenges; they'll mold you into resilient founders⁵.

💪
Willis Wee
Founder, Tech in Asia

The details behind this letter

¹ In my twenties, I once woke up drenched in sweat, unable to meet payroll. I had S$10 left in the bank and another S$10 in my wallet. I had to deposit S$10 to withdraw the minimum amount of S$20 so I could buy myself dinner.

² Running a startup is easier than being a parent. I somehow ended up having three daughters: I love them very much, but it has definitely taken a toll on me.

³ The first time was about 10 years ago, and TIA was saved by Simile Ventures. The second time was in 2018: I was overly ambitious and ran too many high-risk experiments in one go, which significantly increased our burn and led to restructuring and layoffs.

⁴ We drew inspiration from the earlier generations of founders; it's time to step up and pay it forward. My experience with restructuring and layoffs has helped at least three founders who also had to make difficult decisions.

⁵ No other job can be as challenging and give you as many growth opportunities as this one.