Most startups fail. Here are the 20 most common reasons based on research by CBInsights.
Notice how the majority of these ‘reasons’ for failing are down to not achieving Product / Market fit.
In other words, most startups fail because they do not get enough customers, to be interested enough, to pay enough, and keep paying, to use the product or service they offer.
The other reasons are down to people or leadership issues, and just one is down to poor technology.
You’ll Probably Never Get Product / Market Fit
Many startup founders believe they’ve reached Product / Market (PMF) fit when they haven’t. A typical rookie mistake is to assume revenue equals PMF. Michael Seibel, Y Combinator Partner, tells us what Product / Market Fit really is, and how we know if we’ve got it.
The Magic Metrics For a Public Exit
Sammy Abdullah at Dan Fund walks through the maths that shows “…if you make sure you’re striving for net retention of at least 103% and new revenue per dollar of Sales & Marketing spend of $0.55 per year, you’ll build great value and hopefully can go public for a nice exit.”
Facebook Tightens the Screws
“Last week, Facebook shared that the News Feed algorithm is going to shift so that it will more favourably promote content posted by the friends and family of users.” What does this mean for startups? In a nutshell: be more personal or pay even more.
The European VC Map
Brilliant! TechStars have mapped out 500+ VCs that invest in European startups.
Brexit’s Winners & Losers
Here’s a round-up of views by CBInsights on the likely impact of the UK leaving the EU will have on VC funding in the UK and across Europe.
Why Startups Can Raise Too Much
The UK loses its Financial Services Voice in Europe
The UK’s EU Commissioner, Lord Hill, quit his position as leading the Financial Services regulation across the EU. A sign of more to come?
How Will Brexit Affect Fintech?
Pascal Bouvier walks us through how Brexit could affect the key areas of Fintech.
How Will Fintech Affect Financial Services?
Fintech is may affect financial services in expected ways. Simon Cant sets forth a an emerging financial services stack. He urges startups to be clear on where they fit and how be to leverage their position.
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