A recent report – analyzed and published by CBInsights -( @Anand Sanwal, Founder – CEO, grew his daily newsletter to half a million subscribers simply by providing extremely high value, every day*). In this post mortem which is a follow up of an earlier analysis into the data of startup death, found that 70% of tech companies failed within 20 months of raising, on an average, $1.3mn. For hardware startups the demise rate is 97% (chances of becoming a Unicorn, on the other hand, is 1%).
Some of the key reasons : No market need (47%), User unfriendly product (17%), Ignore customers (14%) – see a pattern here?… Disharmony with Investors (13%) and very surprisingly, because they Didnt use network (8%).
This report is the result of the analysis of 287 good bye letters. Graph from Report. Highlights mine.
Link to the article and report here : https://bit.ly/2Cy9ZWv
Link to 287 startup failure postmortem / report : https://bit.ly/2w5fQPW
Here is an article in Fast Company on Anand and his newsletter : https://bit.ly/2JMLCaA