This is why most of the STARTUPS fail……

By SK Kapoor.

There are many tips to success but with acquiring some success tips , one must also learn from the failures.

Here are some post-mortem reports by CB Insights that shows by most of the Startups failed.

Here are some major reasons for their failures that are as follows:


This is why most of the STARTUPS fail……

1. No Market Need

CB Insights’ report shows that tackling problems seem to be interesting to solve rather than those that serve market and customer needs , has been cited as the No.1 reason for Startup failure , as noted in 42% of cases.

According Treehouse Logic , “Startups fail when they are not solving a market problem. We were not solving a large enough problem that we could universally serve with a scalable solution.”

2. Financial Shortages

The question of how one should use one’s money was a frequent reason contributing in the failure of Startups, approximately 29%.

Flud Exemplified shares it’s experience as ,”in fact, what eventually killed Flud was that the company wasn’t able to raise this additional funding. Flud eventually ran out of money and a runway.

3. Wrong Team-Up

Right number of persons with right skill only ensure the success of the Startup!

Standout Jobs said, “ The funding team couldn’t build an MVP on its own. That was a mistake. We could have brought additional co-founders , who would have been compensated primarily with equity versus cash , but we didn’t “.

4. Pricing Issues

Pricing is a dark art , when it comes to success in startups there is a great level of difficulty in setting an adequate price for the product , in such a way that price is high enough to cover the cost but low enough to fit in the budget of customers.

5. Poor Marketing

A moderate quality product outperforming a brilliant quality product in market is the only result of some marvellous marketing techniques.

In this way , in the growing era of Startups , most of them suffer due to poor marketing. So its better to know the target audience and make them attract to the product .

6. Lose Focus

CB Insights’ show that 13% of the stories of Startup Failure provides that loss of focus or distraction from the Startup’s main objective , as a contributor for failure .

7. Pivot Gone Bad

Flowtab’s post mortem explains,
Pivoting for pivoting’s sake is worthless. It should be a calculated affair , where changes to the business model are made , hypotheses are tested , and results are measured, otherwise you can’t learn anything.”

8. Failed Geographical Expansion

Location turned out to be a disruptive issue in couple of different ways in contributing to the Startup failure, one can be disintegration between Startup’s concept and the location.

9. Legal challenges

Sometimes a Startup can outgrow from a simple idea to a world full of legal complexities that may prove disadvantageous to Startups and may result in it’s shutting down.


10. Lacks passion

Good ideas are in no scarcity , but it has been discovered that 9% of the failure of Startup emerged from the reason that passion is lost for a domain due to lack of knowledge about domain.

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