0.4% of start-ups raise funding beyond Series A

20 out of 1,000 start-ups go on to raise Series A rounds.

1 out of these 20 ends up raising their Series D.

So, what happened to the remaining 19 then?

Here is what reports had to say. 👇

They failed after raising their first financing because:

8 (~40%) realized the market did not need their product anymore

6 (~30%) ran out of money as they failed to plan ahead

4 (~20%) said they did not price or cost right

Other reasons were a combination of these &

Beat down by competition, ignored customer’s need, the team wasn’t right, poor marketing, lost focus, bad pivot and/ or stakeholder disharmony

That means that they either:

👉🏼 Did not understand their customer

👉🏼 Did not understand their market

👉🏼 Did not understand finance

👉🏼Did not understand each other

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