Why startups fail infographic

Facebook Share. Stay Connected Join over , of your peers and receive our weekly newsletter which features the top trends, news and expert analysis to help keep you ahead of the curve. Get the best of B2C in your inbox: Subscribe to our newsletter Sign up. Your subscription was successful. Popular Articles. Discuss This Article.

Add a Comment. Sign up for our weekly newsletter. Thanks for adding to the conversation! Our comments are moderated. About Who are we? Reviews Resources. You overspent — Not just money, you may have run out of crucial time too. Do you know how too many cooks spoil the broth? Not every hire needs to have a Type A personality. Simply having a better product offering will not do, you must market the product thoroughly and offer valuable customer experience to be successful. Run customer surveys, find out what they have to say on the subject, and revise your estimate accordingly.

You need to have a clear vision for your company, which you will share with your employees and sponsors. You did not market well — Marketing is at the heart of sales and profit. More often than not, however, startups tend to fail and fail brutally. CB Insights found that 70 percent of upstart tech companies fail, along with 97 percent of seed crowdfunded companies. They also analyzed a selection of startup post-mortems, helping to paint a picture of where founders and investors go wrong. The following infographic shows the top reasons startups tend to grind to a halt with products or services not serving a market need in first position.

Not all ventures manage to attract lucrative investment like Facebook and in 29 percent of cases, they just run out of cash. It's also important to have the right people onboard and pressing on without the right team is the third most frequently cited reason for startup failure. Check our upcoming releases. Feel free to contact us anytime using our contact form or visit our FAQ page. Need infographics, animated videos, presentations, data research or social media charts?

More Information. Skip to main content. Single Accounts Corporate Solutions Universities. Follow Statista. Description This chart shows the most frequently cited reasons for startup failure.