4 Most Common Reasons Of Failed Startups

What you should pay attention to in your organization? Lessons from the industry failures.

Around 20% of startups fail in the first year. 34% of startups close within their first two years. And just over 50% of businesses make it to their fifth year.

Below are the top-5 reasons based on the CB Insights report.

1. No market need

42% of the startups failed because there was no market need for their product or service, as their founders reported.

They either didn’t create something that people wanted or they were targeting the wrong users. Alternatively, their acquisition strategy was not right.

Regardless of the key reason, as a founder, you need to understand that unless you’ve invented free money, users usually don’t just magically appear.

Key questions to ask yourself:

• Does my product solve a significant problem/pain? What kind? Whom does this problem relate?
• Who would find the most value in my product?
• How do I reach those people in the most optimal way?

The best product doesn’t always win. What wins? It’s a product that satisfies the right market.