Answer
Jan 27, 2023 - 01:22 PM
According to a study conducted by the Harvard Business Review, approximately 75% of venture-backed startups do not return investor capital. This does not necessarily mean that all of these startups shut down, as some may pivot to a new business model or be acquired by another company.
However, it does suggest that a significant percentage of venture-backed startups do not achieve long-term success.
It is worth noting that these figures are based on a sample of venture-backed startups and may not be representative of the broader population of startups.
CB Insights published a report showing these as the top reasons for startup failure:
No market need for the product (42%)
Ran out of cash (29%)
Not the right team (23%)
Got outcompeted (19%)
Pivot gone wrong (17%)
Pricing/cost issues (17%)
Product not working (16%)
Lack of business model (14%)
Marketing problems (14%)
It is worth noting that these figures are based on a sample of 101 failed startups, and may not be representative of the broader population of venture-backed startups.
However, it does suggest that a significant percentage of venture-backed startups do not achieve long-term success.
It is worth noting that these figures are based on a sample of venture-backed startups and may not be representative of the broader population of startups.
CB Insights published a report showing these as the top reasons for startup failure:
No market need for the product (42%)
Ran out of cash (29%)
Not the right team (23%)
Got outcompeted (19%)
Pivot gone wrong (17%)
Pricing/cost issues (17%)
Product not working (16%)
Lack of business model (14%)
Marketing problems (14%)
It is worth noting that these figures are based on a sample of 101 failed startups, and may not be representative of the broader population of venture-backed startups.
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