In the world of entrepreneurship, startup success is often glorified through headlines and highlight reels. What’s less discussed are the raw, behind-the-scenes moments of doubt, failure, and overwhelming stress that define the real journey of business founders. In a recent episode of the Fearless Founders podcast, Brock Blake, the co-founder and CEO of Lendio, shared his unfiltered experience navigating through five critical “fetal position” moments on the path to building a $100M startup business.
Blake’s honesty resonates with many in the startup ecosystem—especially founders, small and medium-sized enterprises (SMEs), and venture-backed entrepreneurs—who know that growth rarely follows a straight line. These defining moments aren’t just emotional hurdles; they’re leadership crucibles that forge resilience, sharpen decision-making, and ultimately define long-term success.
Below are five pivotal challenges Brock Blake faced, along with real-life context and key takeaways for aspiring entrepreneurs and business leaders.
1. Running Out of Money Before Christmas
One of Brock’s earliest and most defining challenges occurred just months after he won a $50,000 grant to start his business. Despite the early enthusiasm, he and his team found themselves with no product-market fit and zero revenue—right before payroll was due for eight employees.
This was not just a logistical issue—it was a crisis of confidence. It brought into question the entire foundation of their startup vision and placed immense pressure on Brock as a first-time founder. For many startups, this is the exact moment when reality collides with optimism, and how it’s handled can make or break the company’s future.
Key Takeaways:
- The product-market fit must precede scaling.
- Early on, financial mismanagement can threaten the company’s survival.
- Transparency with your team fosters loyalty and builds culture.
Real-Life Scenario:
It was December, just days before Christmas, and Brock realized they couldn’t make payroll. Instead of hiding the reality, he gathered his team and laid out the hard truth—along with a plan. He offered stock options in place of pay and asked them to decide over the weekend if they were in. By Monday, all eight team members showed up. This moment defined Lendio’s culture of transparency, loyalty, and shared vision.
2. Pivoting From a Failing Business Model
Blake initially launched a venture called Funding Universe, which aimed to connect entrepreneurs with investors through a “dating-style” platform. Despite some traction, the model only served about 1% of the target market.
This experience became a turning point in Blake’s understanding of actual market demand. While the idea had appeal, it didn’t solve a problem for the broader small business community—an insight that shaped the next phase of his entrepreneurial journey. Recognizing the importance of serving a vast, underserved market would soon guide the creation of Lendio and its sustainable business model.
Key Takeaways:
- Identifying the correct market need is as critical as solving it.
- Being willing to pivot can save your startup from stagnation or collapse.
- Serving a broader customer base increases sustainability.
Real-Life Scenario:
After five years and multiple iterations, it became clear that the investor-matching model wasn’t scalable. The team observed that most small businesses didn’t need equity—they needed loans. This led to the birth of Lendio, which now facilitates capital access for thousands of small businesses through lending partners. That strategic pivot made all the difference.
3. The COVID Crisis and Paycheck Protection Program (PPP) Chaos
Perhaps one of the most intense fetal moments Blake faced came during the pandemic when Lendio was at the center of processing Paycheck Protection Program (PPP) loans. With hundreds of thousands of small businesses relying on them and billions of dollars at stake, the pressure was unbearable.
What made this period incredibly taxing was the public scrutiny and national visibility Lendio received, turning Brock into an unexpected spokesperson for the small business economy. In the middle of a global crisis, the stakes weren’t just high—they were historic. One misstep could impact thousands of businesses, their employees, and their families, amplifying the emotional weight of every decision.
Key Takeaways:
- Crisis leadership demands both agility and emotional strength.
- Public visibility adds another layer of pressure to already complex decisions.
- Personal support systems are vital in weathering emotional storms.
Real-Life Scenario:
During the peak of the PPP loan process, one of Lendio’s lender partners ran into serious fulfillment issues. Brock, already a national media figure due to his company’s involvement, found himself on the floor of his home office, emotionally wrecked. His wife rallied their family and community to pray, support, and lift him. Her intervention became the turning point that allowed him to regroup and lead the company through one of its most critical moments.
4. The Art of Letting Go to Key People and Board Members
Another painful yet necessary part of Brock Blake’s journey involved recognizing when certain executives and board members were no longer fit for the evolving business.
These decisions are never easy, especially when deep personal relationships are involved. However, Brock emphasizes that holding onto mismatched leadership can delay progress, dilute company culture, and erode morale. Addressing these issues head-on, no matter how uncomfortable, is an essential part of startup leadership and long-term growth.
Key Takeaways:
- Founders must develop the courage to have hard conversations.
- Mismatched leadership or board dynamics can stall growth and morale.
- Choosing the right partners is essential at every stage of the business.
Real-Life Scenario:
Blake described how he had to transition key board members whose reactions to lousy news created tension and fear rather than trust and problem-solving. He learned to proactively curate a board that aligned with his leadership style and company values. These experiences also highlighted the need for emotional intelligence (EQ) in leadership and management.
5. The Mental Health Battle: Endurance and Self-Mastery
While financial and strategic hurdles are common in startup business journeys, Brock emphasized that the most significant challenge is often internal—the mental war between your ears.
These psychological battles are fueled by the isolation, pressure, and responsibility that come with being a founder. Brock noted that what often derails founders isn’t the market or competition but the doubt and fear that creep in during extended hours and high-stakes decisions. Developing mental resilience allows leaders to keep going when everything seems uncertain.
Key Takeaways:
- Mental fitness, nutrition, and emotional resilience are critical for sustained leadership.
- Founders must proactively manage burnout and balance.
- Support networks and personal routines are not optional—they’re strategic.
Real-Life Scenario:
Blake now prioritizes personal wellness to handle the demands of entrepreneurship. From regular workouts and nutrition routines to attending his kids’ soccer games and recitals, he’s learned that the best leaders recharge and sharpen themselves outside the boardroom. It’s not about working more hours—it’s about making the hours count.
Final Thoughts: Why These Moments Matter And Not Should Take Lightly
Brock Blake’s story is not just about building Lendio into a $100M company—it’s a masterclass in real-world entrepreneurship. These five fetal position moments offer a blueprint for resilience, adaptability, and authentic leadership.
For founders, business coaches, startup advisors, and SME leaders, this episode of Fearless Founders is a timely reminder that startup success is not linear. The journey will test every part of you—from your strategy and vision to your emotional endurance.
But if there’s one core message to take away, it’s this:
“You don’t have to have it all figured out. You just have to make it through the next day.”
The path to $100M (and beyond) isn’t paved with perfection. It’s built on persistence, people, and the power to rise from the fetal position—over and over again.
Listen to the full episode of Fearless Founders featuring Brock Blake to hear more insights on navigating challenges, leading with vulnerability, and scaling your startup without losing your soul. Also, If you’re a founder or building a startup and want to learn more, visit our website, https://fearlessfounders.club/, for insights, coaching, and founder-driven stories that can guide your journey.