Why do over 90% of the startups fail within 3 years? We need to think about this question again.
In this world of startups, it’s very common to hear about success stories. We know we are guilty! We are very proud of our startups’ success and achievements. But we thought that it is also necessary to talk about startups that fail and to analyze why. As Thomas Edison once said
“I have learned fifty thousand ways it cannot be done and therefore I am fifty thousand times nearer the final successful experiment”.
Using the words of one of the greatest businessmen and inventors, we want to add that failure does not mean a lack of talent. The “big ones” have failed many times, but today our life is easier thanks to their ideas!
CB Insights found that 70% of upstart tech companies fail around 20 months after first raising financing. And consumer hardware startups fail even more, with 97% ultimately dying or becoming “zombies”! But what is the cause?
CB Insights listed 20 reasons, but we will present only the 3 that, in our opinion, are the main ones.
1. Not listening to customers