Only 1 in 4 startups make it past 5 years

REASONS WHY STARTUPS FAIL

How many startups fail?

Nine out of ten startups will close shop.

Why? According to Fortune Magazine, here are the top three reasons why.

Note: These stats are not intended to discourage entrepreneurs, but to encourage them to work smarter and harder. 😉

1️⃣ Lack of Financing or Investors

47% of startup failures were due to a lack of financing, nearly double the percentage that failed for the same reason in 2021, based on CB Insight’s data.

2️⃣ Neglecting Marketing & Sales

Many startups focus on building the perfect product but neglect marketing and sales efforts. A Startup Genome report found that 14% of startups fail due to poor marketing.

Startups should allocate a significant portion of their resources to marketing and sales to attract customers and generate revenue. Effective marketing strategies, such as content marketing, paid media ads, and email campaigns, can help startups reach their target audience and boost sales.

3️⃣ Lack of Product-Market Fit

42% of startups fail because of a lack of product-market fit (PMF). Startups need to identify a problem worth solving and then develop the tech — not the other way around.

🔑 The takeaway: By learning from these pitfalls and leveraging the insights provided by research and statistics, startup founders can increase their chances of success and build a thriving business.

THE HEADLINES
In this week’s edition of In the Loop, we put the spotlight on the world of startups

🇸🇬 Breeding unicorns: A look into Singapore's thriving startup scene

🇺🇸 This NY-based tech startup can give renters their dream home

🇰🇭 3 tips for startup founders in emerging markets

MARKET INSIGHT
Breeding unicorns: A look into Singapore's thriving startup scene

🇸🇬 SINGAPORE, SG — Dubbed the “Silicon Valley of Asia”, Singapore has developed a startup ecosystem that has outshined its Southeast Asian neighbors, closing last year with a total deal volume of $6.1 billion. Of the world’s top 100 tech firms, 80 have selected the Lion City as their home.

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FEATURE STORY
This NY-based tech startup can give renters their dream home

🇺🇸 NEW YORK, NY — Named one of Forbes’ 30-Under-30 in 2015, American entrepreneur and investor Ankur Jain established his global reputation as a co-founder of Humin, an app that was later acquired by Tinder. Today, the 32-year-old oversees Bilt Rewards, the first-ever loyalty program that awards points to users for their rental payments and neighborhood spending.

READ MORE

DIGITAL TRANSFORMATION
3 tips for startup founders in emerging markets

🇰🇭 PHNOM PENH, KH — Startups often worry about the cost of new embracing technologies. But, the beauty of digital transformation is that it doesn’t have to be expensive. Here are three ways startups in emerging markets can adapt digital transformation without breaking the bank:

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MORE FROM GMI POST
Canada Business Report 2024: Building a Partnership for the Future

🇨🇦 Rooted in shared values and mutual interests, the relationship between Canada and its next-door neighbor, the United States, has grown beyond the economic and political spheres.

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GMI POST is currently creating a country investment guide for Singapore to be published in FA Magazine. Send us an email to participate.