Why 90% Of Startups Fail
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Most startups fail within the first five years of launch, usually for similar reasons.
Companies like Instagram, Airbnb, and Dropbox began their journey as startups. Hence, it is a no-brainer that most startup founders aspire to build companies as successful. The first steps taken are exciting and the journey is full of possibilities, "I have a great idea, I will make it.", we say to ourselves every morning. With this mindset, the painstakingly challenging endeavor begins.
According to research made by Startup Genome, over 90% of startups fail in the long run. This means 9 out of 10 startups fail. But, what is failure? Failure in this particular context is the inability to deliver returns to early-stage investors. So, why this big of a number? And what can entrepreneurs do to be in the 10%? Tom Eisemann, a professor at Harvard business school, points out “ If you want a startup to succeed, you need to understand why startups fail.” Here are 4 reasons why.