The Rise and Fall: A Tale of Startup Dreams and Realities

In the early 2000s, I witnessed the allure of startup culture in the United States. It was a time when working for a startup was not just a job but a lifestyle. The promise of stock options turning into fortunes overnight, and the thrill of being part of something new and groundbreaking, attracted the brightest minds. Fast forward to today, and a similar excitement has swept across India, fueled by success stories of the “Startup India” movement and the rapid emergence of unicorns. Young employees are drawn to the glamour of startup life, the innovative work environment, and the dream of striking it rich with stock options.

In the past, attracting talent for a startup in India was a challenge. Stability and security were often prioritized over risk and potential rewards. However, things have changed. There’s now a growing acceptance of the startup culture, with employees even welcoming stock options—though, funnily enough, they often see them as an additional perk rather than a substitute for a fixed salary. This mindset reflects a certain risk aversion; while they’re drawn to the excitement and innovative work, they’re not entirely playing the high-risk, high-reward game. For many, it’s more about the cutting-edge work and the lifestyle than the potential big payoff.

I remember one venture that was gaining attention. We were participating in a “Best Startup” competition, and our team was buzzing with excitement. During the Q&A session, one of the judges asked a young team member, “Aren’t you afraid of losing your job, given the inherent risks of startups?”

The young man confidently replied, “Sure, that risk is always there, but with the kind of work I’m doing here and what I’m adding to my CV, if anything happens, I’ll find a new job in no time.”

His response spoke volumes. The excitement was palpable, not just because of potential stock options but because of the nature of the work. The team was driven by the cutting-edge projects and the freedom to innovate. The risk of failure seemed a distant thought overshadowed by the thrill of building something new.

But as with all things, reality eventually set in. The harsh truth about startups is that success stories are few and far between. Statistics show that many funded startups fold within their first two to three years. It’s a reality often forgotten amid the glitter of success stories. And when failure does strike, it hits hard.

One such incident stands out vividly in my mind. A startup founder, brimming with optimism, approached us, saying, “My VC is pushing me to control the burn rate. I need to build a team using EOR services.” His enthusiasm was infectious. We quickly assembled a talented team, and soon, exciting work was underway. They developed a sleek product, took the concept to market, and the tech team was on cloud nine. Every day brought something new—new features, new milestones, new achievements.

However, about a year and a half later, my phone rang again. It was the same founder, but his tone was different. Somber. “The VC has pulled the plug,” he said quietly. “We have to let the team go.”

The news hit like a sledgehammer. For the team, it was as if their world had come crashing down. The brilliant code they had written, the product they had passionately built—it was all rendered worthless overnight. The stock options that once seemed like a ticket to wealth were now just pieces of paper. The sense of accomplishment was replaced by disillusionment. The excitement, the dreams of changing the world—gone.

The transition was painful. The big paychecks stopped, and the reality of the startup’s failure set in. There was shock, denial, and even blame. The glitter had faded, leaving behind the stark truth that not all startups succeed. It was particularly hard for the Indian team, who lacked the market visibility that might have given them warning signs.

Despite the sudden collapse, there was a silver lining. The skills and experience the team had gained were highly valuable. Within a month, every team member had found new employment. Their resumes, now enriched with cutting-edge startup experience, opened doors to new opportunities. They didn’t get a spectacular exit, but they landed safely, thanks to the experience they had garnered.

For me, as an EOR service provider, it was a bittersweet moment. While it was disheartening to see the startup’s end, I was proud of how the team managed to navigate through it. It reinforced the importance of the work we do—not just in facilitating employment but in supporting people through the ups and downs of their careers. We’re not just building teams; we’re building resilience, adaptability, and, most importantly, future readiness.