Why Do Over 90% Of Startups Fail? by Maryam Garjani
A new analysis conducted on startups failure data set available on www.failory.com* from 100 startups within a 23 years, shows only 3 out of 100 startups have remained active by the year 2017; which belong to two categories of social media and productivity
Approximately 70% percent of the startups failure takes place within the first 2-6 years. The startups in this data set were categorized based on number of employees, number of investors, and funding amount to 3 groups for each factor, and average existence duration of groups were compared. The results show:
1. Startups with number of investors more than 3 has higher average existence years compared to those with 3 or less investors.
2. Startups with number of employee between 101 and 1000 has the highest average existence years.
3. Startups with funding amount above 10M$ has the highest value for the average existence years.
4. Average existence years of the startups increases with number of funding rounds.