The Failure Rate for Startups

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

The failure rate for startups is high at almost 90%.

Here's a list of reasons why startups fail:

The founders underestimate how long it will take to gain traction in the market.

The startup runs out of cash.

The product fails to find product-market fit.

The competition wins the market.

There are regulatory challenges that cannot be overcome.

The team was not up to the challenge.

The timing of the startup was off.

The founders failed to focus on productive tasks.

Some startups take on too much debt too soon.

The startup is building a product for an undefined market.

Half of all startups fail in the first five years.

Twenty percent of startups fail in the first year.

Less than 10% of founders build a successful startup.

Startups are challenging for many reasons.

The failure rate is high.

Consider these risks in launching your startup.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

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