As with most constraints, it has turned out to be an advantage in some ways. I focus on working smarter instead of harder, and I really value the hours I have to work with in each day. I have some employees that can accomplish more in one hour than other employees can accomplish in a month. A few hours each day can just be a rounding error if you are really conscious of productivity and smart about how you use your time.
The idea that you can only sleep 3-4 hours per night if you want your startup to be successful is complete BS, and is part of the counterproductive macho aspect of startup culture. If you can get by on 4 hours of sleep, and aren't lying to yourself about your productivity and performance, then good for you...but such people are rare.
I wish I didn't have a sleep disorder, of course, but I would still sleep 7-8 hours per night even if I didn't. Brains function best when they are well-rested.
http://en.wikipedia.org/wiki/Delayed_sleep_phase_syndrome
http://en.wikipedia.org/wiki/Sleep_apnea
My symptoms are exacerbated by a couple other health issues, and the doctors have had difficulty establishing causal relationships. I use a CPAP for the apnea.
I feel like I have jet lag if I miss a little sleep. If I miss a great deal of sleep, my symptoms worsen dramatically...I had a stroke when I was 30 after being sleep deprived for too long, for example.
I was able to do all-nighters without a problem until I was a senior in college. Then, I worked night shift for seven years to make it easier to cope. The sleep issue was yet another motivator for starting my own company.
Not only does this increase your total awake hours, it also improves concentration and acuteness.
If you are interested in studying sleep effectiveness, try to pick up a copy of Why We Nap by Claudio Stampi
My hat goes off to you for making it work. /impressed
If you feel inclined to try again feel free to email me, I might be able to offer some help.. You can compromise with an Everyman polyphasic schedule..
I think one thing I've learned though more than anything is that startups take a long time and its better to work from 8-10 7 days a week for 2 years than to work 6-12 everyday for a few months.
So I average about 6 hours a sleep a night now, and make sure to exercise everyday.