Startup Failure is considered a taboo in many parts of the world. However, it is a phenomenon which is highly prevalent and cannot be avoided. Nearly 90% of startups fail within the first 3 years of operations. Top 20 reasons why start-ups fail include the following:
#1 – Building a solution looking for a problem, i.e., not
targeting a “market need”
#2 – Ran out of cash
#3 – Not the right team
#4 – Get out-competed
#5 – Pricing/Cost Issues
#6 – A “User Un-Friendly” Product
#7 – I got this product. Now I just need a business
model.
#8 – Poor Marketing
#9 – Being inflexible and not actively seeking or using
customer feedback
#10 – Release product at the wrong time
#11 – Lose Focus
#12 – Disharmony with Investors/Co-founders
#13 – Pivot Gone Bad
#14 – Lack Passion and Domain Expertise
#15 – Location, Location, Location
#16 – No Financing or Interested Investors
#17 – Legal Challenges
#18 – Do not use your connections or network
#19 – Burn Out
#20 – Failure to pivot when necessary
Source: CB Insights via Seraf Investor