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Should You Keep Working on Your Startup?

Dalton Caldwell and Michael Seibel discuss why you should continue working on your startup. Discussion includes: Running out of hope is why most people give up, the natural state of startups is that they are failing, if it doesn't feel like it's working you are probably right but you can fix it, founders get stuck thinking that things happen quickly, repeating year one, good reasons to quit, why you should stop being your worst critic, copying other people, not talking to users, enjoying the ride, disassemble the "if I only had a job at Anthropic" myth, seeking agency, why you are not alone, why you should find wins, why you shouldn't compare to others, escaping the trough of sorrows, and more. – Standard Capital is the AI-native Series A fund. Learn more at standardcap.com – About Dalton: Dalton Caldwell is Co-Founder and Partner of Standard Capital. He spent 12 years at Y Combinator, where he served as Managing Partner, worked across 25 YC batches, and advised more than 1,000 startups. His investments include Whatnot, Brex, GitLab, PostHog, Retool, Rappi, Razorpay, and Oklo. Before becoming an investor, Dalton founded imeem and App.net. About Michael: Michael Seibel is a Partner Emeritus at Y Combinator, where he served as a group partner and leader of the early stage accelerator from 2014 - 2024. Michael also serves on the board of three companies: Reddit, Dropbox, and Kalshi. He moved to the bay area in 2006, and was a co-founder and CEO of two Y Combinator startups Justin.tv/Twitch (2007 - 2011) and Socialcam (2011 - 2012). In 2012 Socialcam sold to Autodesk Inc. for $60m and in 2014, under the leadership of Emmett Shear (CEO) and Kevin Lin (COO) Twitch sold to Amazon for $970m. – Are you an AI builder? Check out StandardDB. Discover offers, credits, tools, and partner programs from the StandardDB ecosystem.

Michael SeibelhostDalton Caldwellhost
Sep 7, 202614mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Startup success demands persistence through the inevitable trough of sorrows

  1. Seibel and Caldwell argue that most startups fail because founders give up during predictable low points, so persistence is often the deciding factor when money and health aren’t immediate constraints.
  2. They emphasize that the natural state of startups is “not working,” and founders should stop using public outliers and social media narratives as benchmarks for progress.
  3. They caution against endless early-stage pivoting driven by embarrassment or comparison, urging founders to ship, talk to users, and run the startup long enough to learn whether the core hypothesis is true.
  4. They reject hindsight regret about missing lucrative jobs as a misguided expected-value comparison, noting startups are primarily a trade of greater agency for greater risk.
  5. They suggest founders stay motivated by valuing learning, autonomy, and customer value creation—so progress is possible even inside the ‘trough of sorrows.’

IDEAS WORTH REMEMBERING

5 ideas

Startups usually die from founders quitting, not from “external forces.”

They argue the default trajectory of a startup is that it feels like it’s failing, and many companies die because founders lose hope and quit. Since quitting guarantees failure, persistence is often the single biggest controllable lever—assuming you’re not hitting true constraints like money or health.

Most “successful” companies take longer than your mental timeline.

They warn founders against comparing their “year one” to the highly publicized outliers that look like overnight wins. Many iconic companies took far longer than people assume to find product-market fit or a working business model.

Don’t repeat year one forever; stay long enough to learn what’s real.

They criticize founders who keep restarting at “year one” by constantly pivoting without accumulating real learning. The goal is to stick with a hypothesis long enough—through shipping and user conversations—to gather clear evidence about what’s true.

If you’re optimizing for low-risk money EV, startups are the wrong game.

They address the common regret narrative (“I should’ve joined Anthropic/Google”) as hindsight bias and misaligned goals. If your primary objective is maximizing low-risk expected cash returns, they argue you shouldn’t be doing a startup in the first place.

The real startup trade is agency for risk—measure wins accordingly.

Their framing is that founders trade higher risk for greater agency—having “hands on the wheel.” If you chose that trade, measure progress by learning, customer value, and autonomy, not by whether you’ve ‘taken over the world’ yet.

WORDS WORTH SAVING

5 quotes

Look, it's well understood, I think, that, um, most startups die of, uh, suicide than homicide.

Dalton Caldwell

If you give up, there is no way you will succeed. There is 100% chance that the day you decide to give up, you- your startup will not have succeeded, right?

Dalton Caldwell

There are a lot of roads to success, and most of them are longer than you think.

Michael Seibel

And if what you're trying to do is make the most money in the lowest risk way possible, don't start a startup.

Dalton Caldwell

This period of time is so common it has a name. So, like, it's called the trough of sorrows, right?

Michael Seibel

Trough of sorrowsQuitting vs. persistenceTime-to-success misconceptionsHindsight bias about jobsAgency vs. expected valueUser conversations and shippingPivoting vs. repeating year one

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