Why are Tech Startups Failing? I Give You 6 Critical Reasons

Take a look at these names…

  • Dazo
  • Spoonjoy
  • TalentPad
  • TaxiForSure
  • Jewelskart
  • Fashionara
  • ITiffin

What’s the common thread that links these names? While these start-ups started off with huge investments being poured in for them to thrive, they failed to make a mark in today’s highly competitive market. As India witnesses a sudden surge in the number of start-ups, here are some numbers to prove my statement – 2281 start-ups have cropped up since 2014 across verticals, the harsh fact that 9 out of 10 startups fail cannot be refuted. From lack of product to market fit to disharmony within the team and founding members, Dr Som Singh, mentor, advisor and entrepreneur provides a post-mortem on why tech start-ups are faltering on their way up the ladder.

1. Ineptitude

Just because you have an idea in mind doesn’t mean you can build a business empire around it right? Is just the idea really enough? A few of the primary reasons why startups bleed out is incompetence to…

  • Identify if the idea is market worthy
  • Carry out sufficient competitive analysis of the industry
  • Analyze if the product/service they are looking to offer is exclusive
  • Identify a value bracket
  • Categorize budget restraint and why it’s crucial to stick to the resources at hand

Additionally having ineffectual inexperienced employees on board and operational mismanagement drains venture capital while also exhausting revenue.

2. Lack of administrative experience

Not every idea gives you ‘Eureka!’.  Proper management is key and that management requires experience. Successful leaders have honed their skills over years after incessant practice. Some of the challenges in which experience is required are project and personnel management, crafting and executing a company’s mission and vision, and implementation of a company’s strategy. Weak teams add very little value to the company and are usually the ones who could ruin the company. Lack of innovative ideas and thus not being able to provide an exclusive niche product in an already over-crowded market also leads to collapse. A good management team is clever to discover tactics that ensure a company’s success in the market place.

3. Marketplace Deterioration

The industry is moving at a rapid pace. What is ‘in’ at the moment may be out-of-date in no time. This is the very reason why tech products have a very short lifep, may be even much shorter than the time it had taken to establish the product from ground up. Many tech start-ups see that the time they take to ideate on their plan, get suitable funding and start their business, they are already irrelevant or by now have some rough competition.

4. Poor IT infrastructure

When it comes to a technology company, it cannot survive without an excellent IT set up and support system. Start-ups need entire infrastructure built on powerful servers, networks, computers and workstations for employees. The technical dexterity required to set up such systems is exceedingly sophisticated thus it has been seen that successful start-ups often outsource certain sections of their work.

5. Inadequate marketing

You need to be aware of the fact that it pays to pay attention to your customers and for that you need a proper marketing and communication strategy. As a startup, there are more than a few cost effective marketing tactics that can get the word about your business out in the market.

6. Diminished Finances And Poor Cash Flow

“Cash is king”

Dearth of funds is one of the nastiest things that can happen to a startup. Most start-ups run out of cash as soon as they commence and bump into complexities in finding further funding. Archetypal causes why companies run out of money comprise inadequate administration, deficiency in sales and revenues, scanty finances, etc.

The tech industry is undoubtedly one of the hardest nuts to crack. So, if you are planning to start out, make sure you bear these points in mind and then take the leap. 

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyHomeworkGeeks
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business and administrative studies
Customer 452773, February 23rd, 2023
Business and administrative studies
Excellent job
Customer 452773, March 9th, 2023
Business and administrative studies
Excellent work ,always done early
Customer 452773, February 21st, 2023
English 101
great summery in terms of the time given. it lacks a bit of clarity but otherwise perfect.
Customer 452747, June 9th, 2021
Customer 452591, March 18th, 2021
Impressive writing
Customer 452547, February 6th, 2021
Thank you!
Customer 452545, February 6th, 2021
Love this writer!!! Great work
Customer 452597, April 5th, 2021
Business and administrative studies
great job as always
Customer 452773, February 26th, 2023
thank you so much
Customer 452749, June 10th, 2021
Thank you!!! I received my order in record timing.
Customer 452551, February 9th, 2021
Business and administrative studies
excellent, got a 100
Customer 452773, May 17th, 2023
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes


eskişehir escort
- Korsan taksi Antalya


eskişehir escort
- Korsan taksi Antalya