Why Startups Fail: It’s All About Marketing and Team. Top Story - March 2022.
The majority of business books focus on success stories. Otherwise, they wouldn’t have sold so well. But survivorship bias sometimes paints a picture too pretty to be true. What if instead of success stories we study the stories of failure? In the frenzy of excitement, it’s easy to forget that in reality, the majority of startups crash-land in the first 3 years of their existence. The dream wears off, the reality hits. The smartest thing an entrepreneur can do is to study exactly why startups fail, identify a problem, and think about how to prevent it. The CB Insights research portal made a list of most common reasons for startup failure based on the post-mortems of the 101 failed startups (the figures exceed 100% because there usually more than one reason):
