Entrepreneurs start a business with the single goal of achieving success. But we also see them fail miserably. 80% of startup companies witness closure since three years of commencement says a statistics.
So, what should entrepreneurs do to be in that 20% population range of successful people?
Research Giant CB insights has analyzed 101 failed startup companies and found out 20 important reasons categorically. CB insights is a company that focuses on business, investment and investment strategies. Also they supply valid information on startups and their founders, venture capital and Angel investment.
These are the 20 main reasons for startup failures:
SIDBI, a government based financial organization caters to the financial requirements of small and medium enterprises. It plays a crucial role in the growth of SME’s. Startup India and Standup India are the two movements initiated by the central government to enhance the spirit of entrepreneurs.
It is quite difficult for the startup companies to get guidance and funding. These two factors are very vital for the growth of a startup firm. Various investment agencies, angel investors and incubators have associated themselves with Startup Mitra which in turn facilitate the tie-up.
SIDBI startup Mitra also paves way for startup firms to reap the benefits of government plans. The CB Insights tech market intelligence platform analyzes millions of data points on venture capital, startups, patents, partnerships and news media.
India’s top 10 funded startups of 2016
Ibibo Group : $ 250M Investors : Naspers
Industry : Online Travel Company
Snapdeal : $ 200M Investors : Ontario Teachers Pension Plan, Iron Pillar, Brother Fortune Apparel
Industry : online marketplace
BigBasket : $ 150M Investors : Abraaj Group, Sands Capital Management, IFC, Helion VC, BVP, Ascent Capital
Industry : Online Grocery Shopping and Online Supermarket
CarTrade : $ 145M Investors : Temasek, Warburg Pincus, Marche Capital
Industry : online auto classifieds platform
Byju’s Classes : $ 75M Investors : Sequoia, Sofina Industry
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Lenskart : $ 60M Investors : IFC, Ratan Tata, Kris Gopalakrisnan, IDG, Adveq Management, TPG Growth.
Industry : Shop online for Sunglasses, Eyeglasses and Contact Lenses for men & women
Mobikwik : $ 50M Investors : GMO Payment Gateway, MediaTek, Sequoi, Tree Line Asia
Industry : Online Recharge, Mobile Recharge & Bill Payments
Lendingkart : $ 32M Investors : Bertelsmann India, Saama Capital, India Quotient, Darrin Capital, Mayfield India
Industry : SME-lending firm, Short-term loans for Small Businesses
Nestaway : $ 30M Investors : Tiger Global, IDG Ventures
Industry : Marketplace for shared home, apartments, flats rentals
Droom : $ 29.8M Investors : Lightbox, Beenext, Beenos, Digital Garage (Japan)
Industry : online marketplace to buy & sell used cars, bikes, scooters, bicycles, aero planes.