Lesson for entrepreneurs: What are the common mistakes startup founders make and how to avoid them?
To add to these harrowing odds, last year was particularly harsh for this merry brigade of rainbow chasers. After a surge in 2021-22, the funding winter in 2023 saw a 72% decline in funding, with only two startups (InCred Finance, Zepto) achieving the unicorn status, compared to 21 and 45 in the previous two years. Yet, many see it as a blip in the overall startup scape. A recent KPMG report claims that venture capital investment in India doubled sequentially in the March 2024 quarter, to reach $3.2 billion across 354 deals, surpassing the global market. India also has the third largest startup ecosystem in the world, with 1.17 lakh entities (DPIIT), nearly 1,710 venture capital funds, 794 accelerators and incubators (Tracxn), and several government initiatives like Startup India.
80% of startups fail in first 5 years
Reasons for failure
Why do startups fail?
Despite this fervour and support, financial and otherwise, the startup journey is extremely difficult. Explains Devashish Chakravarty, Mentor and Founder, SalaryNext.com: “The difficulty can be summed up in one word: uncertainty. Not only is there uncertainty about the financial outcomes and business processes, but also in the ability of founders and their support systems to deal with it.” Agrees Sachin Jaiswal, Co-founder of Niki.ai, which folded up in 2021 after nearly six years. “The founders’ journey is very tough because mentally we are not prepared for the storm,” he says.
Also Read: Here are the key mistakes that founders make at different stages of
