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
[ View on LinkedIn ]