Mar 06 2025 25 mins
Jeremy Au discussed common startup failure patterns, and emphasized that failure is frequent and often inevitable even for companies that make it to later funding stages. Many startups fail to deliver financial returns for investors, regardless of how innovative or pioneering they might be. He also talked about various reasons for failure, from team issues to premature scaling, providing real-world examples to illustrate these patterns:
1. Good Idea, Bad Bedfellows: A strong idea can fail due to poor team dynamics, such as co-founders unable to agree on leadership or lacking the right expertise.
2. False Starts: Startups that build products without understanding customer needs often fail.
3. False Positives: Early customer success can mislead founders into scaling too quickly, leading to failure when they target the wrong market.
4. Speed Trap: Startups that achieve product-market fit but expand too quickly into new products or markets can burn through capital unsustainably.
5. Help Wanted: Sometimes external factors like market shifts or bad luck cause failure, even when product-market fit is achieved.
6.Cascading Miracles: Some startups that fail despite raising large sums of money or low customer traction later spark similar successful ventures.
Watch, listen or read the full insight at https://www.bravesea.com/blog/startup-failure-patterns
Get transcripts, startup resources & community discussions at www.bravesea.com
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