Why startups fail: 442 startup failure post-mortems

What causes start-ups to fail? CBInsights has studied a total of 442 cases over many years.

What are the main reasons for start-up failure and what can we learn?

  • 38% were not liquid enough or could not raise enough capital
  • 35% no market/no need
  • 20% forced out of the market by competence
  • 19% wrong/bad business model
  • 18% regulatory/legal challenges
  • 15% price/cost causes
  • 14% not the right team
  • 10% wrong timing
  • 8% poor product/performance quality
  • 7% disputes in the team
  • 6% failed change of direction
  • 5% burned out or lack of passion

Sometimes startups fail. Innovation and entrepreneurship are about trial and error. Some things will succeed, some won’t. Some (if not all) of the reasons mentioned could be prevented though. But : Do we want to conduct multi-year market research every time. Can analysis paralysis and time lag be reasons for failure? What’s the right input, preparation and research? The essence of startups will come down to trying something. With an eye on potential traps, perhaps some of the pitfalls can be avoided.

The list of reasons may also inform investors about potential red flags.

Quelle: CBInsights. Quelle/Download: https://www.cbinsights.com/research/startup-failure-post-mortem/

Deutsche Version des Beitrags: https://xbn.news/warum-start-ups-scheitern-442-start-up-failure-post-mortems/

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