Wen's Idea: Why do Companies Die?
- wzek1213
- Apr 19, 2024
- 1 min read
š Why do Companies Die? š
Founders, please read this to avoid the common death traps.
Here are some crazy scary statistics:
ā 9 out of 10 startups fail
ā 7.5 out of 10 venture-backed startups fail
ā 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:
1ļøā£ Poor product-market fit
2ļøā£ Wrong marketing strategies
3ļøā£ Team/ HR issues
In the sheet below, Iāve 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? š¬
Sources: Kyril Kotashev via Failory, Josh Howarth via Exploding Topics & Tom Huddleston Jr. via CNBC

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