92% of start-ups fail

The Startup Genome Project (2012)

The statistics surrounding startup failure are staggering. According to one study, nearly 92% of startups fail within the first three years. There are a number of factors that can contribute to this high rate of failure, including a lack of customer demand, poor management, and insufficient capital. However, the biggest reason for startup failure is simply that the product or service is not good enough. In order to succeed, a startup needs to offer a unique or innovative product that solves a real problem for customers. Without this key ingredient, it is very difficult for a startup to compete in the marketplace. The odds may be against them, but for those startups that do manage to create a successful product, the rewards can be great.