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Home Technology & Industry AI

The hidden cost of bad databases – exploring the start-up problem

By Suraj Patel, VP, MongoDB Ventures, Corporate Development & Startups at MongoDB

SVJ Writing Staff by SVJ Writing Staff
January 26, 2026
in AI
0
The hidden cost of bad databases – exploring the start-up problem

Startups are built on urgency. Startup founders in the UK know first-hand the pressure to launch quickly, capture attention, and prove traction before the runway runs out. But in the race to move fast, there’s also a risk. 

Roughly 60% of UK startups fail within their first three years. Even those that achieve product-market fit can face huge hidden technical risks stemming from decisions made early on. A common mistake is prioritising speed to launch over choosing the right infrastructure for the long-term, assuming it can be fixed later. Fast forward to when the product has traction, investors are circling, and that’s when suddenly performance issues emerge. The database that used to be able to handle a thousand users now struggles with a hundred thousand or a million.

The truth is, a bad hire can be corrected in 90 days. Bad infrastructure can take months to untangle and cost ten times more.

Why “minor” choices aren’t minor

Database selection often feels like a small and simple technical detail. In reality, the wrong choice can have serious consequences. A major rebuild after Series A can drain millions and shake investor confidence. For UK and European startups competing with deep-pocketed US rivals, this risk isn’t just inconvenient; it could derail growth entirely.

Indeed, a quick prototype database can become a liability as user numbers climb and every hour spent migrating is time lost on customers and product. Technical debt is often described as a tax on future development. In reality, it’s more like compound interest. The longer you defer fixing foundational issues, the more expensive they become.  

Exploring cloud credits for startups

Startup programmes from AWS Activate, MongoDB for Startups, Oracle Universal Credits and Google Cloud for Startups offer free credits that slash early infrastructure costs. These perks are valuable, but they raise a critical question: are you choosing technology because it fits your product, or because it’s free?

For many founders, the honest answer is both, and that’s fine if you understand the trade-offs.

The upside is clear: access to quality infrastructure from day one. The risk is lock-in. As you build on a platform, switching becomes harder. Your team learns its quirks, your code depends on its features, your data lives in its format. By the time credits expire, migration might cost more than staying put. That’s not necessarily bad, but it should be a conscious choice, not an accident.

When assessing a programme, think about portability, long-term costs and whether the platform aligns with your future direction, especially in an AI-driven world. AI-heavy applications need different tooling than traditional CRUD systems. 

Building for tomorrow, not just today

For UK startups, success starts with strong foundations. The choices you make now shape what you can build, how fast you scale and how resilient you are when markets shift.

Early perks like free credits are tempting, but they shouldn’t overshadow the bigger question: will this technology still support you when you have a hundred times more users and global ambitions? If the answer is unclear, you’re risking momentum and market position.

Imagine your brand-new payment system can’t handle sudden spikes during a viral campaign, you’ll lose revenue and credibility overnight. Or you launch an AI feature only to find your platform can’t actually support it. Strong infrastructure goes beyond technology; it’s equally crucial in promoting trust and growth.

Infrastructure might not be glamorous, but it is critical for your startup’s trajectory. By neglecting it, startup leaders risk slowing down innovation when speed matters most. As a result, they need infrastructure that enables the agility and scale that attracts investors. In today’s market, where AI and global competition prevail, picking the right database could matter more than hiring your first team member.

The UK and future start-ups

UK startups raised over £7 billion in the first half of 2025. That capital represents opportunity but also responsibility. Founders need to think beyond launch speed and free credits. They need to treat infrastructure as a strategic choice, not a technical afterthought.

If you’re building in the UK, don’t let hidden infrastructure risks drain your resources and energy. Make decisions that scale with your ambition. Because in the end, the database you choose today could define the company you build tomorrow.

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