Don’t Be the 9 Out of 10 — Here’s Why Startups Fail
Did you know that nine out of ten startups fail?
Shocking, right?
There are countless reasons why a startup might not make it. Whether it’s launching a product no one wants, entering the market too early, or burning through cash too quickly, failure can loom large. Running out of funds or failing to secure investment can also sink even the most promising ventures.
But the reasons don’t stop there.
According to data from CB Insights, 70% of startup tech companies fail, typically within 20 months of securing their first round of funding. By analyzing 101 startup failure post-mortems, CB Insights has identified the top 20 reasons why startups fail. From a lack of product-market fit to ineffective marketing, the infographic below reveals the most common pitfalls.
By reviewing this data, you can assess your own startup to ensure you avoid making these costly mistakes.
Top 20 Reasons Startups Fail
#1 — Lack of Market Need
#2 — Running Out of Cash
#3 — Not the Right Team
#4 — Getting Outcompeted
#5 — Pricing/Cost Issues
#6 — User-Unfriendly Product
#7 — No Clear Business Model
#8 — Poor Marketing
#9 — Ignoring Customer Feedback
#10 — Launching at the Wrong Time
#11 — Losing Focus
#12 — Founder/Investor Conflicts…
