Why Most Startups Fail (and How to Avoid It)

It sounds harsh, but it’s true: most startups fail. In fact, research shows that nearly 70% don’t make it past the first few years. The reasons vary, but there are common threads we see time and time again—things like poor product-market fit, ignoring customer feedback, or simply running out of cash.

As someone who's seen the highs and lows of building and scaling, I'm here to share the insights I wish I'd known sooner. Think of this as your shortcut to avoiding startup heartbreak.

Quibi raised a jaw-dropping $1.75 billion and failed within six months. So, what went wrong?

• They ignored customer feedback. Quibi assumed they knew what people wanted without validating it.
• They believed money would solve everything. Huge budgets don’t guarantee product-market fit.
• They launched a product that didn’t solve a real problem. Their short-form content wasn’t sticky enough to keep users engaged.

Lesson: Don’t fall in love with your idea. Fall in love with the problem you’re solving. Always test before scaling.

Without it, nothing else matters.

You can have a great team, a big budget, and slick branding—but if your product doesn’t meet a real need, you’re building on sand.

Ask yourself:

• Is this a problem people are actively trying to solve?
• Have I spoken to potential users and validated demand?
• Are people excited enough to pay for this?

Pro Tip: Read The Mom Test by Rob Fitzpatrick. It’s one of the best books for learning how to validate your startup idea by asking better questions.

Startup founders often get caught in pitch mode. But great founders know when to stop selling and start listening.

Validate, iterate, and stay curious. Feedback (especially the stuff that stings) is your fastest path to building something people actually want.

It’s easy to assume that raising a big round of funding will fix all your problems. But that money can disappear quickly without the right strategy.

The startups that succeed aren’t always the best-funded. They’re the ones that:

• Stay lean
• Obsess over data
• Move fast based on real signals, not vanity metrics

In his TED Talk, startup founder Bill Gross analysed hundreds of companies and found that timing, team, and execution were important—but timing was the #1 predictor of success.

“The idea matters, but getting it to market when people actually need it? That’s what wins.” – Bill Gross

If you’re too early, no one’s ready. If you’re too late, you’re already irrelevant. Know your timing.

Watch it here

Startup life is tough, but it doesn’t have to be a guessing game. When you validate your ideas early, stay close to your users, and focus on solving real problems—you build the kind of foundation that scales.

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