About startups, technology and life in Silicon Valley
Wednesday, October 12, 2011
Why Startups Fail
"Building a successful business is every entrepreneur's goal--but only 1 in 12 succeed in doing it. Why do startups fail? The Startup Genome project analyzed data from 3,200 companies and came up with some answers. At the core of any successful business are two things: a good product and a large market for that product. In other words, a startup should be able to scale. And to scale properly, it must balance the growth of five core dimensions: customers, product, team, business model, and funding. The dominant reason for failure: premature scaling of one or more of those dimensions."