Why Startups Fail: Here are the Top 20 Reasons [Infographic]

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why startup fails

Do you know why startups fail every single day around the globe?

There are several reasons like over-hyped stories everywhere, over-promising and under-delivering and various others.

Over 90% of startups disappear before they see any traction in their business and over 51% of all businesses die within a period of 5 years. And most of them don’t even make any buzz and mysteriously vanishes into thin air.

Report from CB Insights shows that over 42% of startups fail because they do not solve the real market need.

Also Read: Grow fast or die slow: Strategies to sustain business growth

Other than that, over 29% startup fail because of lack of funding or running out of cash. Whereas over 23% startups fail due to not having the right team in their corner.

The marketing team from Precisely did an analysis on a report on the reason behind the failure of 156 startups from CB Insights and divided those reasons into 20 different categories, where in many cases startups failed for that reason. Then Precisely crafted an infographic, shared below.

Check if your business vulnerable to one of these factors or not.

Also Read: 21 Powerful Business Lessons For First Time Entrepreneurs

why startups fail

Also Read: Why Your Startup Needs a Cross-functional Team to be Successful

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