20 Rocking Reasons Why Startups Fail by CB Insights

Before we get into the reasons why startups fail, i would like to sincerely Thank You for your support and wish you a Happy and Healthy 2019…! So, you’re probably wondering, why am i starting the year off with a post about failure?! Well, I want to ensure that 2019 is a successful year and in order to stay on the right tracks i think you (both as an individual and company – big and small) need to know both what you should and should not be doing.

What’s interesting about the no nonsense CB Insights research is the “post-mortem” commentary from start-ups who have been there and unfortunately done it.  Add to that the expected and continued growth of “disruptive” startups, in particular fintech startups – fintech unicorns (startups with valuations over $1 billion) lead startup funding rounds and valuations in 2018 – that are striving to offer  innovative products through digital channels providing a smoother and simpler customer experience.

Rocking Reasons why Startups Fail:

  1. Inability to understand market and customer demands
  2. Inability to control spend and eventually running out of cash
  3. Inability to form and maintain a diverse team
  4. Inability to understand and remain competitive
  5. Inability to understand pricing and costs
  6. Inability to listen to your customer and create a customer unfriendly product
  7. Inability to agree a business model
  8. Inability to market and promote the product
  9. Inability to talk with and understand your customer
  10. Inability to time product release
  11. Inability to stay focused
  12. Inability to agree within the team and/or your investors
  13. Inability to pivot/course correct correctly or at the right time
  14. Inability to have and/or keep the passion
  15. Inability to expand geographically
  16. Inability to gain investor interest / financing
  17. Inability to understand and comply with legal requirements
  18. Inability to make use of your network
  19. Inability to maintain a work-life balance leading to burnout
  20. Inability to course-correct
Thanks for stopping by – Take a look around…!!


20 Reasons Why Startups Fail - CB Insights

Leave a Reply




This site uses Akismet to reduce spam. Learn how your comment data is processed.