Why do most startups fail?

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Now with the development of society, many people with lofty ideals embarked on this road, and entrepreneurial success has become the concern of entrepreneurs. So why do most startups fail? Genome a survey of more than 3,200 high-tech growth companies.

The findings are as follows:

1. A start-up enterprise typically experiences 5 stages: discovery, validation, efficiency, scale and maintenance and reconstruction;

2. According to the scale of the morning and evening, the start-up companies are divided into two major types: contradictions (premature scale) and consistency (in due period of scale);

3. Contradictions and consistency startups have a significant difference in team, funding, user access, user growth, outsourcing, line coding, and development at this stage.

Here we highlight the discovery phase, in this phase, 77% of the contradictions of the start-up companies will be more than 50% of the focus on product development, and 45% of the consistent type of start-up companies will be more focused on customer development. The main reason most startups fail is because of the premature scale, and the result of the scale is that startups lose customers. Start-ups should not rush to expand their business in the discovery phase, and should devote more attention to customer development.

As we can see from the above picture, although the early stages of contradictory startups in many ways better than the consistency of startups, but in the scale of the development of the company has become worse, the number of teams decreased, the user growth rate is also slow.

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