Top 20 Reasons why Startups Fail

Top 20 Reasons why Startups Fail

Startups are like a Newborn baby. They need to be carefully nurtured with passion until they can crawl, walk and run by the end of the first year. 99crores.com is the Startup Marketplace, Social Network, Aggregator connecting Investors, Startups, Job Seekers, Freelancers, Mentors, Consultants, Attorneys, Auditors, Events, Businesses to Buy and Sell, Crowdfunding, Live Talk shows, Video Library of Knowledge Series, Quizzes on the 99Crores IOS and Android App.

  • How long new businesses survive
    75% for 1 year
    50 % for 5 years
    33% for 10 years
  • 75 percent of VC-backed startups studied eventually failed.
  1. No market need 42%
  2. Lack of cash 29%
  3. Inappropriate team 23%
  4. Strong competition 19%
  5. Pricing and cost Mismatch with Low Profitability 18%
  6. Bad core product 17%
  7. Lack of a business model 17%
  8. Bad marketing 14%
  9. Customer neglect 14%
  10. Bad timing –Either too early or too late 13%
  11. Loss of focus -13%
  12. Intra-team conflicts -13%
  13. A pivot gone bad -10%
  14. Lack of passion -9%
  15. Bad location -9%
  16. Lack of financing or investor activity -8%
  17. Legal hurdles -8%
  18. A lack of advisors or network -8%
  19. Burnout -8%
  20. A failure to pivot -7%

Here is the Infographic Image….

reasons for startup failure

And here is video describing the reasons…

Co-Founder & CEO of 99Crores, Clinicopedia, uMedico

1 Comment

  • John Doe

    Nice article, very useful

    John Doe Reply

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