The fact is, for every startup entrepreneur who succeeds, there are plenty who don’t. Many startups collapse despite great ideas, excellent workers, or even strong investor support. If you’re a budding entrepreneur, it’s just as crucial to study the failed startups as it is to learn from the success stories. At Lance Surety Bonds, we work closely with startups across many industries, so we’re in tune with the challenges you might face. For our recent infographic, featured in Forbes, we dove deep into a recent study by CB Insights, to illustrate The Top 20 Reason Why Startups Fail.
CB Insights’ findings come from their analysis of 156 failed startups. To determine what went wrong, they primarily relied on testimonies from the business owners themselves. In some cases they also interviewed clients, competitors, or investors. Since each startup failed for a number of reasons, the sum percentage of these top 20 reasons is well over 100%.