Why startups fail

• Sukanya Bharati
• August 21, 2024
• Blog
• #productmanagement, #startups
• 0 Comments

In India, only 1 in 3 seed funded startups make it to round A.

And this is just looking at VC funded data.

If we consider all the bootstrapped and angel funded startups, those that don’t make it operational scale or venture scale, things will look much worse…

This is only part of the story. The real story behind this is why does this happen?

If we look at research from CB Insights, others and our own experience, nearly half the startups have a product-market fit problem.

Either they are building something that few people want, or they are solving a problem that is not seen as urgent and important.

Off course some may not be targeting the right market, or the market may not be big enough to hit venture scale

Other problems include team dynamics, lack of expertise and experience, financial management, competitive and regulatory landscape.

It may seem like the odds are stacked against founders, startups and venture funds that invest in these, even if that were the case, some teams systematically identify problem areas and blind spots.

Then they address these; get help where needed; be ruthless in their decision making and streamlining; brutal honesty – what is working and what is not.

If your startup is not growing the way it should, it’s time to check your assumptions, uncover blind spots and get help to accelerate.

Full disclosure

We have done this with several startups and even mature products.

We will be soon announcing an offering for the discerning #founders and #venturecapital funds