Most entrepreneurs study others’ successes to learn how to succeed in their own ventures.
But there’s a lot to be learned from failure, too. And learning from other people’s failures is a lot less costly than learning from your own (although you should do that, too).
That’s why I wanted to share some of the top reasons startups fail, with examples:
🔻 Ran out of cash/failed to raise new capital (38%) ➡️ Airlift, a Pakistan-based ride-sharing app/delivery service, closed down operations in July 2022 after failing to carry out the funding round it had planned for 2022.
🔻 No market need (35%) ➡️ Edtech startup Udayy shut down in June as the need for remote learning tools decreased when children returned to in-person schooling.
🔻 Got outcompeted (20%) ➡️ The workplace communication platform Friday shut down in June due to market competition and lack of product vision.
🔻 Pricing/cost issues (15%) ➡️ Kaodim, a Malaysia-based platform for booking home services like plumbing, was forced to shut down due to rising costs and pandemic-related supply disruptions.
For a list of the top 10 reasons startups fail, take a look at the image below. 👇
What is the biggest challenge you’ve faced as an entrepreneur? Please share in the comments. 🗯️
Source: CBInsights
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