The Top 20 Reasons Startups Fail – Based on Analysis of 101 Startup Postmortems

The Top 20 Reasons Startups Fail – Based on Analysis of 101 Startup Postmortems

We love startups, we really do!

That’s why we’re here; we support, love and nurture the buds in our diverse and vibrant community. We see the hard work and sacrifice. Most blossom, sadly some become petals in the wind…

It’s always sad to see a startup fail, especially when some failures are avoidable – so we thought we’d share ‘Top 20 Reasons Why Startups Fail’ from CB Insights, so you don’t!

Read the stories behind the stats…‘Top 20 Reasons Why Startups Fail’

  1. NO MARKET NEED - 42%

  2. RAN OUT OF CASH - 29%

  3. NOT THE RIGHT TEAM - 23%

  4. GET OUT-COMPETED - 19%

  5. PRICING / COST ISSUES - 18%

  6. USER UN-FRIENDLY PRODUCTS - 17%

  7. PRODUCT WITHOUT A BUSINESS MODEL - 17%

  8. POOR MARKETING - 14%

  9. IGNORE CUSTOMERS - 14%

  10. PRODUCT MISTIMED - 13%

  11. LOSE FOCUS - 13%

  12. DISHARMONY AMONG TEAM / INVESTORS - 13%

  13. PIVOT GONE BAD - 10%

  14. LACK PASSION - 9%

  15. FAILED GEOGRAPHICAL EXPANSION - 9%

  16. NO FINANCING / INVESTOR INTEREST - 8%

  17. LEGAL CHALLENGES - 8%

  18. DIDN’T USE NETWORK - 8%

  19. BURN OUT - 8%

  20. FAILURE TO PIVOT - 7%

We’d like to echo CB Insights and say thank you to the founders who share their stories. Very brave, so thank you!