Top 20 Reasons Startups Fail Takeaway: CB Insights / Anand Sarwal Startups Embody No Market Needed 42% Ran Out of Cash 29% “Productive” Failure Not the Right Team 23% Got Outcompeted 19% Pricing/Cost Issues 18% Poor Product 17% The overwhelming majority of startups fail to make it Need/Lack Business Model 17% out of their seed funding phase. And no founder Poor Marketing 14% claims that it is an easy path to success in the startup 14% world. It is a tough, complicated journey to undertake Ignore Customers as an entrepreneur which pays immense tolls on the Products Mis-Timed 13% individual and their families and friends. But they don’t Lose Focus 13% let failure ruin their optimism. Disharmony on Team/Investors 13% Pivot Gone Bad 10% Lack Passion 9% When ex-Apple designer and startup founder/ Bad Location 9% CEO, Mark Kawano, was asked if he was glad No Financing/Investor Interest 8% that he launched Storehouse even though it Legal Challenges 8% closed in 2016, he responded unhesitatingly: Don't Use Network/Advisors 8% Burn Out 8% “Absolutely.” Failure to Pivot 7% @asanwal Section 2: Design → De$ign 15