Top 20 Reasons Why Most Startups Fail [Infographic]

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Are you a newbie founder? Do you want to ensure your startup does not fail woefully? Researching early to discover why startups fail will also help you get

insight into how yours can succeed.

It’s true that 90% of all startups fail, a major reason being that they run out of cash, but there are several other reasons which contribute to failure. You may be shocked to learn that a seemingly insignificant error you’re making now might have a huge potential to hurt the life span of your startup.

Lance Surety Bonds teamed up with a group of marketers at Presitely, to map out the top 20 reasons why startups fail. Research for this infographic was drawn from a CB Insights analysis, on the reasons behind the failure of 156 startups. CB Insights conducted an interview of startup founders to find out why they failed, and sorted these reasons into 20 distinct categories. You’ll observe that the sum of the percentages exceeds 100%, because many startups fail for more than one reason.


the top 20 reasons why most startups fail1

Read 2871 times Last modified on Thursday, 02 March 2017 14:16
Oghenerukevwe Toka

I use analytical and tactical skills to help grow and develop new opportunities for businesses as a digital marketer. From marketing plans and content strategy to lead generation and SEO, I employ the best practices and principles of digital marketing to maximise business growth. Connect with him on Twitter: @RukevweToka and on LinkedIn:


  • Comment Link Damilare Macaulay Jun 22 2016 posted by Damilare Macaulay

    All very accurate. Poor management skills and trying to make your product be a perfect fit for everybody can also make a start-up fail especially when they haven't been funded yet.

  • Comment Link stephen omagbemi Jun 16 2016 posted by stephen omagbemi

    Good, keep it up. Solutions that will prevent startup failures could help new entrepreneurs.

  • Comment Link Joseph Ezenwa Jun 11 2016 posted by Joseph Ezenwa

    This is well articulated and insightful.There are may be other reasons like poor management,not keeping good accounting system,high cost of productions resulting from lack of critical infrastructure like energy etc.


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