Startups · Failure

Why do startups fail?

Ioannis MSc IT professional

September 14th, 2016

As I am looking at starting my own business I keep hearing that only 1 out of 10 survives. What are the most usual ingredients behind making the 9 out of 10 fail?

Perry DiClemente Aviation Advisor at Spike Aerospace, Inc.

September 14th, 2016

I have been on many new startups.  I have noticed several of the companies, the visionary CEOs initially hires the best talent but then fails to listen to them.

John Patzakis Founder and Executive Chairman, X1 Discovery, Inc.

September 14th, 2016

Sometimes, start ups fail because a smart but stubborn Greek is the founder and CEO. Especially ones named Yanni. Good luck and Kalo taksidi. John Patzakis Sent from my iPhone

Joe Albano, PhD Using the business of entrepreneurialism to turn ideas into products and products into sustainable businesses.

September 14th, 2016

Most common reason: building a product that no one wants

Raja Kumar Code Surgeries | Micro Fixed Bids | Scala | Go | Kotlin | ReactJS | Android | Java | NFR Doctor

September 14th, 2016

Products needs to evolve to a solution, which can be mass scale adoptable. This way keep startup flexible enough to transform each week both on implementation side and acquiring customers. Don't try to behave like enterprises with all the static mindset and static products.

Theresa Marcroft Marketing Strategist / CMO / Interim VP Marketing

September 14th, 2016

I just published a blog article on this very topic.  It has to do with the fact that most new start ups don't listen to their customers as they should.  You need to get very close to the customer and truly understand what keeps him/her up at night.  More here:

Feel free to call me if you want to talk.

Theresa Marcroft
Interim CMO
MarketSavvy Inc.
Tele:    (408) 656.1876

Sebastien Mirolo CEO DjaoDjin inc.

September 14th, 2016

Not enough revenue, not fast enough. There is a minimum amount you need to spend just to deliver one product to one customer. That minimum cost is owed every month, whether you have one customer or none (rent, taxes, etc.).

Some businesses operate well with 3 people. Some businesses require a minimum of 15 people to be profitable. Some businesses have good unit economics at 100 employees. If you are stuck in the middle, you might get all the costs and none of the benefits. Invariably the business will go under.

Ansar Hafil Business Consultant at Winning In Business

September 15th, 2016

There are many reasons, but for me there are two main reasons. 1. The people 2. There is no market for the product or service.

Rod Abbamonte Co Founder at STARTREK / @startupHunter / @startupWay / @CoFounderFound / @GOcapital / @startupClub / @lastminute

September 15th, 2016

Bad team

Martin Omansky Independent Venture Capital & Private Equity Professional

September 15th, 2016

It's of specific reasons. Generally, however, an enterprise fails because the founders are naive or ill-informed. Also, timing is often wrong, and IP is not as good as expected, and/or markets don't develop. Sent from my iPhone

Peter Baltaxe Consultant, product leader, serial entrepreneur

September 15th, 2016

The big benefit of the Lean Startup approach is that you should be de-risking the product-market fit before making a big investment in product development.

If you read "Traction: A startup guide to getting customers" by Gabriel Weinburg and Justin Mares, they advocate spending half your time on product development and half on getting early customer traction.  Most entrepreneurs spend the vast majority of their time on product development.