WHY STARTUPS FAIL
Jon Gosier & Walid Al-SaqifTED FELLOWS RETREAT 2015
THE UNIVERSE IS CONS-PIRING AGAINST YOU.
IT’S MATH.
“The default state of startups is failure.”
- Chris Dixon
This is probably you.
This where most companies start.
This is how most companies see themselves.
Optimism (a.k.a Healthy Delusion)
Startups overwhelmingly fail for the following reasons:
1. Run out of cash.
2. Founder feuds
3. ‘Super-Founder’ Syndrome
Not trusting your team, failure to delegate responsibility. Hiring the wrong people (friends and family instead the right people for the job).
4. Poor casting/hiring
Hiring the wrong people (even without nepotism) can be disastrous. Its always harder to get rid of people than to bring them on.
5. Unrealistic expectations
The inability to deal with reality versus ambition.
6. Dues ex machina
Expectations of a “savior” to emerge and turn everything around. (ex. venture capitalists, new hire, acquisition etc.)
7. Dues ex machina
Expectations of a “savior”to emerge and turn everything around.
8. Lack of discipline
No/Poor planning. Not adhering to budget (ex. overspending). Not having a budget. No long term strategy.
9. Undercapitalized
This usually means you’re trying to accomplish too much with too little (foolish optimism) , or you’ve taken less money than you needed to begin with (poor planning).
10. Black Swan
Sometimes life just hits you with a curveball.
Unknown Unknowns are impossible to predict (otherwise they would be known) and harder to plan for.
11. Wrong funding strategy
Where the money comes from matters. Don’t go to non-profit financiers with for-profit ideas and vice versa.
Hybrid models have hybrid funders.
12. Lack of focus
Trying to be everything to everyone.
13. Giving Up
The only way to fail is to stop trying.
WHY STARTUPS FAIL
Jon Gosier & Walid Al-SaqifTED FELLOWS RETREAT 2015