

4 Ways Startups Fail - eladgil
http://blog.eladgil.com/2011/05/4-ways-startups-fail.html

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danielrhodes
All 4 points can be reduced to one: lack of a sufficient market to support the
startup.

Notice that even crappy startups having all of those problems will do fine if
they are in a hot market.

1\. Running out of money may be the technical reason why a startup dies, but
in reality it is a symptom that they either weren't selling or couldn't
convince anybody to invest -- both bad signs.

2\. Team implosion does not happen when times are good. Even if it does, the
momentum of a good market will mean that the startup can survive because there
will readily be people to take their place.

3\. Lifestyle businesses either come from huge but highly fragmented markets
or small markets. Either way, not good if you had higher ambitions. Being able
to recognize where your idea falls is an important skill.

4\. If your startup has a lot of potential or is making a lot of gains, there
is no reason you should have bad investors. Bad investors pray on companies
with little to no leverage.

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vipivip
I think location may also contribute to a startups failure.

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eladgil
In what ways? It would be great to hear more...

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vipivip
Well in certain places everything is a stone throw away (VCs, angels, lawyers,
mentors, labor, etc.)

