Survey: 24% of Workers Think Startup Culture is Toxic

Startups, particularly tech startups, have long promised nontraditional offices, kegerators, and a fast-moving business model less encumbered by corporate red tape and hierarchy.

For many millennials entering the workforce in the wake of the 2008 crash, startups promised everything they could want in a job: similarly aged peers, office perks, a work-hard, play-hard attitude, and the potential to strike it rich if the startup succeeds.

In 2024, a decade and a half later, have startups lost their luster?

We surveyed 900 full-time workers on their thoughts on startups, whether the appeal was still there, and what would motivate them to consider startup jobs.

While startup culture may not be dead, it certainly is having a moment of reckoning. Among our respondents, 27% of women and 21% of men say that startup culture is toxic, an average of nearly 1 in 4 workers.

A staggering 75% of workers polled said the long hours are one of the least appealing aspects of startup culture, followed by the “high risk, high reward” model (43%), the need to live in a tech hub city (36%), the young workforce (26%), and the “work hard, play hard attitude.”

While some of these might be appealing in a vacuum, taken together, they paint a picture of a life without balance.

Over 1 in 5 surveyed said they would never work for a startup. Top dealbreakers include the lack of job security, long hours, risk of layoffs, the volatile economy, and a toxic work environment. In fact, 1 in 4 believe startups are boys’ clubs: perhaps this is also why 1 in 4 women surveyed would never work for a startup.

With the rise in remote work, office perks are less appealing to 30%, and 3 in 4 said they would generally prefer remote work to office perks. Then again, 89% would join a startup if they could work fully remotely.

These office perks aren’t unique to startups anymore either, as 70% say corporations offer the same perks now. While less than 1 in 3 respondents said they would still move across the country to join a startup, most wouldn’t.

Startups have it harder: 69% think it’s harder for them to succeed, and more than 1 in 10 of those surveyed think startup culture is dead. Top killers include market saturation, the desire for work-life balance, and COVID-19.

In this age of remote work, are urban tech hubs even relevant? Perhaps not. While San Francisco has held the unofficial crown of tech capital of the U.S., 43% of our respondents believe it’s been dethroned.

San Francisco may have lost its luster due to how expensive it is to live there. Nearly half of workers (41%) polled blame the high cost of living as the leading cause of San Francisco’s dethronement. Additionally, 1 in 5 say there’s no longer such a thing as a tech capital and 12% say other cities have taken on the mantle of innovation instead.

While tech capitals may be a thing of the past, many Americans think ‘startup hubs’ or cities that seem to incubate new businesses still exist. More than 3 in 4 (79%) say startup hubs still exist in the U.S., with the top cities being San Francisco, New York City, Austin, Seattle, and Los Angeles.

Does perception of where the new businesses are match reality? Analyzing U.S. Census Bureau data, we identified the states with the most new business applications. Vermont showed the most growth in new business applications from June 2023 to 2024, with an increase of 7.5%. Meanwhile, Georgia posted the most significant loss of new business applications in the same period, showing a decrease of 20.6%.

Even in challenging times, the American entrepreneurial spirit persists, and startups will continue to launch — they just might need to pivot their culture to attract the best talent in the American workforce.

“Tech startups have always ebbed and flowed depending on the overall economy and the state of technology. With the creation of the internet, we saw all kinds of dot-com startups, while the invention of the App Store saw new app developers rise up,” said HostingAdvice technology expert Christian de Looper.

“The pandemic and uncertainty around the economy resulted in some of those venture capital funds drying up, but over the past year or so, we’ve started to see plenty of new AI startups rise up. There are still clear advantages to living in a hub city, such as access to venture capitalists and the sharing of ideas. Those hub cities do change, though, and that’s a good thing — as it allows for fresh talent and new ideas to pop up. Hopefully, it will have a positive impact on startup culture, too.”

In July 2024, we surveyed 901 full-time workers from across the U.S. on their attitudes toward startups and startup culture. They were 48% women, 50% men, and 2% non-binary. Their ages ranged from 18 to 65, with an average age of 39.

To determine the states with the most and least new business applications, we analyzed data from the U.S. Census Bureau.

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