European startup founders often grapple with the challenge of balancing festive breaks with the pressing demands of funding rounds. This situation presents a stark contrast to Europe’s traditional work-life balance ethos, which emphasizes a ‘work-to-live’ approach with long holidays, proper lunch breaks, and strictly limited working hours. For instance, France is known for its custom of avoiding work emails after hours. However, for tech startup founders, the ethos of work-life balance becomes difficult to uphold as the fast-paced, high-stakes nature of startup life frequently demands their attention, even during festive periods. The reality is that the world of tech startups is rarely conducive to long breaks, especially when crucial funding rounds are underway.
The Pressure to Work Through Holidays
A survey conducted by the early-stage venture capital firm Antler, which involved 63 startup founders, highlights the palpable conflict between maintaining festive breaks and ensuring ongoing company growth. Approximately a third of the founders indicated that they expect to take less than two days off during the holidays, as they prioritize funding rounds and company growth. While 38% planned to take a week off, another 32% foresaw taking only two days or less. Notably, 10% of founders anticipated working through the festive season without any time off. This statistic underscores the significant pressure faced by these entrepreneurs.
Interestingly, the article provides insights into the reasoning behind some founders’ decisions to work through the holidays despite the conventional slowdown in fundraising activities during Christmas. Jeroen van Velzen, a Dutch serial entrepreneur, recalled signing a term sheet on Christmas Eve, pointing out that the end of the year can often be an opportune moment for closing deals. This sentiment is echoed by Alan Poensgen, a partner at Antler, who emphasized that though everyone needs a break, deal-making persists through the holidays. He noted that some founders might secure significant deals—essentially their “multi-million Christmas presents.”
Real-Life Experiences of Founders
The festive season has played a pivotal role in the experiences of many startup founders. Dean Hastie, co-founder of the German fintech company Tapline, shared an anecdote from December 2022 when weeks of intense negotiations culminated in the signing of a €30M debt facility on Christmas Eve. Hastie described this period as both unforgettable and stressful. Other founders view the holiday season as a lucky charm period for deal-making. For instance, Cristiano Coretti of the Norwegian proptech startup Laiout recounted closing deals just before or shortly after Christmas, reflecting a similar pattern of success during the festive season.
Likewise, Max Teichert, co-founder of the British gaming startup Track Titan, observed a consistent trend in securing signatures for funding rounds during the holiday period. He mentioned that this trend materialized for them with the first signature on December 23rd, followed by the final one on December 30th. This resulted in a full closing of their round over the holiday season in 2022, demonstrating that the festive period can indeed be a productive time for securing investments.
Challenges and Strains of Holiday Fundraising
Despite some founders finding success during the festive season, the process does not come without its obstacles. Mads Emil Dalsgaard, co-founder of the Danish climate tech startup Klimate, recounted his experience of closing their first funding round while sitting in a child’s room at his mother-in-law’s house in Estonia. He described this experience as less than ideal. Similarly, Nish Agrawal, co-founder of the German AI food waste startup SkoneLabs, noted that venture capitalists and angels tend to rush processes before Christmas Eve, resulting in expedited due diligence and back-to-back meetings. This rush to finalize deals adds an additional layer of stress to an already hectic period.
The diversity of founder experiences during the festive period paints a complex picture. While some find the season favorable for securing deals, others face significant challenges. For some households, particularly those without children or with families far away, Christmas might be a quieter time, making early or off-season holidays more appealing. Nonetheless, the relentless pressure on founders to continue working through the holidays can lead to burnout. The article expresses concern that such expectations can have adverse effects on the well-being of these entrepreneurs, highlighting a need for better support systems.
Addressing Burnout and Work-Life Balance
European startup founders often face the challenge of juggling festive breaks with the urgent demands of securing funding. This situation sharply contrasts with Europe’s traditional work-life balance ethos, which emphasizes a ‘work-to-live’ approach, featuring lengthy holidays, proper lunch breaks, and strictly regulated working hours. For example, in France, it is customary to avoid work emails after hours. However, maintaining this balanced lifestyle becomes tough for tech startup founders. The high-paced, high-stakes nature of the startup world frequently requires their attention, even during holidays. This relentless pace makes it difficult for founders to enjoy extended breaks, especially when crucial funding rounds are in motion. The reality is that the tech startup environment rarely supports long holidays, as the ongoing demands of securing investment and scaling the business often take precedence over traditional work-life balance practices. This continuous pressure can lead to startup founders sacrificing their personal time to meet the pressing needs of their ventures.
