Top 20 reasons for failed startups: no market demand ranked first

Source: Internet
Author: User

CB Insights, an American technology market research company, recently analyzed the failure cases of 101 tech startups and summarized the 20 major causes of the failure of the startups, these include final financing, insufficient competitiveness, poor products, and poor business models. The following are the 20 reasons:

1. Product Development without analysis needs

42% of failed startups experienced this problem. The Founder persistently executes his own ideas, but fails to figure out whether the ideas meet the market requirements. "I realized that we don't actually have customers because no one is interested in the products we develop," said the founding person of patient communicator to CB Insights. Doctors need more patients, rather than a more efficient office ."

2. Unable to obtain new financing after financing is exhausted

29% of failed startups encountered this problem. The flud team told CB Insights that, in fact, flud failed because the company failed to raise new funds.

3. Team failure

23% of failed startups lack people capable of directing the overall situation. This is an interesting reason. Most venture capitalists say that the first consideration for investment is the team, and the second is creativity.

4. insufficient competitiveness

Venture capitalists and billionaire Peter Thiel suggested that start-ups avoid competition and enter areas that others did not try. About 19% of companies do not.

5. Pricing/cost problems

For start-up companies, product pricing cannot be too high or too low. The most suitable pricing should be found. Unfortunately, 18% of companies did not find the correct pricing.

6. Poor Products

17% of startup companies develop terrible products. The founder of gamelayers recalled that I think the company should have put it down to develop products that are easy to interact.

7. Lack of business models

A good idea requires a good business model. In this case, we need to find a way to monetize creativity. The lack of business models leads to the final failure of 17% of startups.

8. Poor Marketing

It is not enough to know how to write code or develop a good product, but to sell more products through effective marketing. 14% of startups do not have a good marketing team.

9. Ignore customers

Clayton Christensen, a professor at Harvard Business School, pointed out that too many customers can cause large companies to fail. However, 14% of startups failed because they ignored the customer.

10. Incorrect product launch time

Time points are crucial. 13% of failed startups failed to launch their products at the right time. A calxeda employee told CB Insights that the company's operations are faster than customers, but products are not what customers need.

11. inconcentrated energy

It is not easy for start-ups to maintain enthusiasm and focus from beginning to end. 13% of startups fail due to inconcentration.

12. The founding fathers and investors disagree

Many large companies have encountered similar situations. 13% of startups have this problem.

13. The development direction is off track

10% of startups have this problem.

14. Lack of enthusiasm

It is another thing to have an idea and put it into practice with enthusiasm. 9% of startups failed due to lack of enthusiasm.

15. Poor geographic location

This includes the poor location of the company in the country and the long distance between employees. 9% of startups encountered this problem.

16. No financing and investor support

Compared with funds, 8% of startups have never been favored by investors from the very beginning.

17. Legal Risks

8% of startups fail to enter a field with high legal risks. The founder of turntable.com said: "It is too difficult for me to learn from many failed music startups to engage in this industry ."

18. ineffective use of the network and listening to opinions

It is not enough to have a network. You must also know how to use the network. The founder of blurtt said: "If investors are involved, your investors will help you. Let investors get involved from the very beginning and don't be afraid to ask them for help ."

19. Exhausted

8% of startups failed to balance the relationship between their work and life. The founder of blurtt said: "I started to feel exhausted. I am a leader in the company, but exhausted, I feel helpless and lost the ability to innovate ."

20. failed to correct the error in time

7% of startups failed to stick to a bad idea. The imercive company said: "We are confused between two strategies in the middle, knowing that one of them can succeed, but cannot be boldly implemented ."

Top 20 reasons for failed startups: no market demand ranked first

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