Startup: Main reasons that lead to failure

Do you want to open your startup and need guidance? Learn from the most experienced and check out reasons that led to the failure of companies that were in the beginning. Startup Failures.

In Brazil, there are approximately 6 thousand startups and 62 thousand entrepreneurs, however, many face problems right at the beginning of the business.

The CB Insights list compiled the top 20 reasons startups fail from a survey of founders and former investors of 101 companies that failed.

At the end of the research, CB Insights came to two conclusions. The first is that hardly a startup fails for a single reason. The second is that the companies contacted gave specific reasons for not being able to go ahead. That is, the set of reasons is imprecise and according to the reality of each startup. Lack of market need, running out of money or the wrong team are among the driving factors

Why do startups fail? startup bankruptcy

• No need for a market (42%)
• Running out of money (29%)
• Not having the right team (23%)
• Unable to compete (19%)
• Problems with the price of the product (18%)
• Weak product (17%)
• Lack of a business model (17%)
• Bad marketing (14%)
• Not listening to consumers/clients (14%)
• Launching a product at the wrong time (13%)
• Losing focus (13%)
• Lack of harmony between founders and investors (13%)
• Pivoting (changing course or business model) was not a good choice (10%)
• Lack of passion (9%)
• Bad location (9%)
• Lack of investor interest (8%)
• Legal (legal) issues (8%)
• Lack of networking/consultants (8%)
• Burn out (professional exhaustion) (8%)
• Failure to pivot when needed due to poor product or bad decision (7%)

See too:

• 10 Successful Brazilian Startups You Need to Know
• Finnish Startup Uses Solar Energy to Make Sea Water Drinkable
• What is Startup? Definition, Examples, Brazilian Startups
• 14 Corporate Position Acronyms In English You Need To Know