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This question is about startup statistics.

What is the biggest reason that startups fail?

By Zippia Team - Sep. 1, 2023

Premature scaling is the biggest reason why startups fail, being responsible for 70% of failures. However, there are ultimately many reasons why startups fail, and some of the most common include:

A lack of product-market fit (34%), marketing problems (22%), team problems (18%), financial problems (16%), and more.

Ultimately, startups are far more likely to fail than to succeed, which is why it's important to monitor a startup very carefully, even if it's initially successful.

What is the biggest reason that startups fail?

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