Fractl recently studied 193 failed startups to uncover the most common reasons for startup failure. Lack of funds was an expected cause, but founders also listed market issues and problems with the business plan that lead to their demise. In fact, 26% percent of startups said they didn't have a viable business model, which contributed strongly to their demise.
We found that money doesn't solve problems, and startups with funding were more likely to blame cashflow for their failures. In fact 40% of startups that received at least $10,000 didn't have enough money to stay afloat.
Meanwhile, tech startups in social media and software risked becoming obsolete or ignored in already-crowded markets. The founders failed to identify a need in the market or create a customer-friendly product.
While their companies aren't around anymore, the founders have left their stories for us to learn from. Here are 10 quotes from failed startup founders about what they came to realize, and how you can learn from them.
On the Business Plan:
On Product Development:
On Catering to Your Target Market:
On Putting the Customer First:
On Researching Demand:
On Scaling Up:
On the Idea:
On Seeking Validation:
On Raising Money:
On Getting it Right the First Time: