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The top 9 reasons startups fail, based on analysis of 431 VC-backed shutdowns

CB Insights

20d ago· 5 min readenInsight

technology business

Summary

Analysis of 431 VC-backed startup shutdowns since 2023 reveals the top 9 reasons startups fail. While "running out of capital" tops the list at 70%, it's typically the final symptom rather than the root cause. The more fundamental issues include poor product-market fit (43%), bad timing (29%), and unsustainable unit economics. The article draws on CB Insights data and public post-mortems to identify patterns in startup failures during the post-zero-interest-rate shakeout.

Source

bskyThe top 9 reasons startups fail, based on analysis of 431 VC-backed shutdownscbinsights.com

Key quotes

· 3 pulled

Startup failures rarely come down to a single cause. But they do follow patterns.

"Ran out of capital" tops the list at 70%, but it's almost always the final cause of death, not the root problem.

Capital running out is where these stories end.

Snippet from the RSS feed

Discover the top 9 reasons for startup failure — from lack of product-market fit to running out of cash to legal troubles.

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