The infographic "Top 20 Reasons Why Startups Fail" is based on a research made by CB Insights. They analyzed 156 startup failure stories. There is more than one reason for each startup failure.
1. The most common reason for startups failure is No Market Need. 42% of the participants in the survey didn't manage to offer a product or service that there is a real consumer need for it.
2. The second important milestone is Running Out Of Cash. 29% of the business owners said this is the main reason for their failure. But we must note that this problem is caused not only by startups' underfunding, but also by spending recklessly because of overfunding.
3. 23% of the startups shut down because of problems in the team. These could be lack of expertise, lack of motivation, problems between co-workers and others.
Check out the full infographic below to see all the 20 reasons.
Infographic by: www.suretybonds.org
