The startup community is on the upswing the world over and there are innumerable startups shaping the next phase of development globally with innovative business ideas, models, products and services. However, a large majority of startups bite the dust due to a multitude of issues that keep them from realizing their vision.

Here’s looking at the top 10 reasons behind the failure of startups-

1.     Absence of market demand- To create sizable market demand, startupshave to ponder whether they are solving a pertinent problem or taking care of any other aspect which brings more convenience and comfort to customers. A whopping 42% of startups recognized lack of demand for their product/service as the inherent reason behind their failure.

2.     Absence of suitable funds- Raising funds is a must for startups in order to accelerate their growth plans. Too many startups run into headwinds due to lack of funds for taking care of operational expenses and eventually shut shop. Additionally, there are several stories of startups who raised considerable funding but blew through the cash in quick time. 29% of startups fail for this reason as per studies.

3.     Not getting the right team in place –Not having the right team of skilled and motivated individuals can hamper startups hugely. 23% of startups failed due to their inability to get the right team in place. Making sure that employees have a common goal and stick to the blueprint is imperative for success as far as startups are concerned.

4.     Excessive competition- There are several startups which end up competing with several biggies and other players when they create services/products/solutions which are more efficient. Often, successful and innovative ideas are replicated by other startups which begin grabbing market share of the pioneers in the space. Second movers often end up capturing more market share than the first-mover startup itself. 19% of startups fail on account of excessive market competition.

5.     Improper pricing- Many startups end up pricing their products too high or low in a bid to either create a niche segment or draw more customers. In the bargain, 18% of startups fail due to their inability to zero in on the right pricing for their products/services. It is always a fine line when it comes to pricing products/services reasonably enough to draw buyers while covering all operational costs and maintaining healthy margins at the same time.

6.     Poor quality of products- A whopping 17% of startups fail due to poor product quality and in many cases, companies come up with products/solutions which do not find takers in the market due to quality issues and other problems. The startup should first have a clear idea and understanding of the targeted audience and the product should be in sync with their wishes/aspirations/requirements.

7.     Faulty business model- Some startups simply have lackluster business models that were never going to work in the first place! Many business ideas are not backed by proper monetization blueprints. 17% of startups fail due to improper business models which also hamper an entity’s ability to raise funding.

8.     Poor marketing- Marketing is the lifeblood for any successful startup. Several startup founders often remain in love with their products only to neglect the requirements of the target customer. Additionally, making this target audience aware of the product and engaging with prospective and existing customers is a must for scaling up a business. However, poor and insufficient or sometimes wrongly directed marketing leads to failure for 14% of startups worldwide.

9.     Not focusing on the customer- Customer centricity is the name of the game these days. However, several startups suffer due to their inability to garner proper feedback and insights from customers and use these to improve their products/services. Many startups end up diluting focus on the customer’s needs and this is a reason behind the failure of 14% startups globally.

10.   Wrong Timing- Wrong timing is the reason behind the failure of 13% of startups as per studies. Timing is a huge differentiator between failure and success for a startup. Timing the market right is hugely essential in order to build a successful business.

These are the top 10 reasons lurking behind the failure of startups and new startup founders and even the old hands might do well to give this a look-over. Founders should always be aware of the key challenges that exist and should do their best to improve on multiple parameters with a view towards building a successful and scalable startup.

At India Accelerator, the only GAN partnered accelerator in India, we provide a 360-degrees mentorship program to early-stage technology startups on all the aspects of business scale-up. Currently, we are inviting applications for S2019 Cohort. Early stage technology startsup can apply to be part of the same at – – and take advantage of the curate program for the founders to empower them with cash, connects and competency.