CB Insights analyzed 110+ startup failures and came up with this list.
The top 3 reasons why:
- Ran out of cash / failed to raise new capital – 38%
- No market need – 35%
- Got outcompeted – 20%
The second one is probably the most important to watch out for 👀
As Paul Graham wrote back in 2006…
In a sense there’s just one mistake that kills startups: not making something users want. If you make something users want, you’ll probably be fine, whatever else you do or don’t do. And if you don’t make something users want, then you’re dead, whatever else you do or don’t do.
So if there is a market need and your product/service addresses it well, it shouldn’t be too hard to raise new capital or overcome most other hurdles.
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