Wen's Idea: Why do Companies Die?

💀 Why do Companies Die? 💀

Founders, please read this to avoid the common death traps.

Here are some crazy scary statistics:

→ 9 out of 10 startups fail

→ 7.5 out of 10 venture-backed startups fail

→ Only 1% of startups become a unicorn

These statistics come from various sources including CB Insights and Failory.

There are three top reasons why startups fail:

1️⃣ Poor product-market fit

2️⃣ Wrong marketing strategies

3️⃣ Team/ HR issues

In the sheet below, I’ve summarized various insights on why startups fail.

Luckily, there are plenty of ways you can maximize the chances of success:

> In the early stage, it is critical to validate your idea

> Do not hire too senior level personnel too soon

> Build your target revenues when you have some initial revenue data

> Take the pitch seriously by working with experts to elevate your story

What other ways do early-stage founders get it wrong or right? 💬

#startups #fundraising #venture

Sources: Kyril Kotashev via Failory, Josh Howarth via Exploding Topics & Tom Huddleston Jr. via CNBC