The most common reasons startups fail

Founders blame investors, investors blame CEOs, CEOs blame research and development (R&D), R&D say the product is fine, the market just doesn't get it, and marketing people blame it all on the recession.

Some startups succeed, yet so many fail, and it’s failure that teaches us the best lessons. What are the main reasons why startups fail? In a survey carried out by tech blog ArcticStartup and CoFounder magazine, more than 100 startup entrepreneurs share their experiences and lessons learned.

  1. The team doesn't have what it takes to succeed
  2. The idea is not serving the market need
  3. Running out of cash too fast
  4. Not being able to support growth
  5. Poor allocation of resources and money
  6. Not realizing the competition in the market
  7. Ignoring customers

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