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The top 9 reasons startups fail

CB Insights 4 min read
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Summary (TL;DR)
CB Insights analyzed 431 VC-backed startup failures since 2023. Top causes: ran out of capital (70%), poor product-market fit (43%), bad timing (29%), and unsustainable unit economics (19%). Most failures stem from root causes that drain capital, not just running out of money. Warning signs include Mosaic score declines, partnership falloff, and shrinking headcounts. Healthcare & biotech had the most failures and capital lost, followed by fintech and food & agriculture.