This founder’s $195M startup dream turned into a nightmare over coffee

With thousands of headlines flooding our feeds every day—funding rounds, product launches, and the latest unicorns—it’s easy for founders to get swept up in the noise. That’s why we pay attention to just a few voices that cut through the hype.

One of them is Alex Turnbull, the founder of Groove and Helply. His newsletter doesn’t sugarcoat startup life—it tells the stories founders really need to hear. And today, Alex shared one that hit especially hard.

It all started with a coffee meeting.

He Raised $33M, Built a $195M Startup, Then Came the Coffee That Changed Everything

Alex sat across from a friend—someone who had raised $33 million, scaled a team of over 100 people, and secured a $195 million valuation in 2023.

From the outside, it was the dream most founders chase.

But something was off.

“Want to hear something scary?” his friend asked, hands visibly shaking as he held his coffee.

He hadn’t slept in weeks.

The numbers he shared were sobering:

• $750,000 monthly burn

• Flat growth

• 3 months of runway

• 100+ employees counting on him

And then came the line that really stung:

“Your 5-person company makes more profit than mine ever has.”

From Founder Hype to Founder Fatigue

Two years ago, this founder was a venture success story. Today, he’s grappling with the weight of unrealistic expectations, high burn, and the haunting knowledge that the math no longer works.

He’s not alone.

As Alex noted in his newsletter:

“Most venture-backed founders won’t get their fairy tale exit. Most will sell for less than they raised. Most will wish they’d built differently.”

The cycle is familiar:

• Huge rounds

• Big hires

• Pressure to grow at all costs

• No margin for error

• A looming wall

And eventually, the crash.

The Venture Treadmill

The early days of raising capital can feel like rocket fuel. It comes with perks—media coverage, office upgrades, team expansion, and validation.

But the machine rarely slows down.

Behind the curtain, many founders are struggling to stay afloat. Boards want growth. Teams need direction. Burn rates become weekly topics. And founders start trading sleep for survival.

As Turnbull put it:

“They know the math doesn’t work. They see the end coming. But they can’t stop the machine…”

The Rise of Quiet Profitability

While some founders chase valuation headlines, others are quietly building profitable, sustainable businesses:

• Lean teams

• Real customers

• Measured growth

• No external pressure

They aren’t on the front page of TechCrunch. But they’re not lying awake at night, either.

They’re building for freedom. Not hype.

Choose Wisely

This isn’t an anti-VC rant. Venture funding has its place. But every founder has to choose their path and understand what comes with it.

So before chasing that next round or hiring another 50 employees, ask:

• Is this growth necessary, or just expected?

• Do I want a board, or do I want control?

• Would I trade sleep for a valuation headline?

There’s no right answer for everyone.

But for Alex’s friend—and many like him—the costs are becoming harder to ignore.

Final Thought:
In a market where exits are rare and burn is brutal, the quiet companies might just be the smart ones.

Build for freedom.
Build for control.
Build to keep your company.

Credit: This story was originally shared by Alex Turnbull in his newsletter. He is the founder of Groove and Helply.