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Why 90% of Startups Fail [infographic]


There’s an art to launching a startup and that art will have one of two outcomes: success or failure. In this infographic, Allmand Law examined the reasons why some companies make it and others don’t. A spokesperson for Allmand Law said, “The successful startups seem to be flexible enough to shift with changes in the tech climate. Whereas with the failed startups, some fail due to a lack of vision and others have terrible timing. Ultimately, there is a lack of foresight which might have saved their companies.”

Two companies that were compared are Shopkick, which succeeded, and Airtime, which failed. Reasons Shopkick succeeded include the fact that its developers invented new software, more accurate than GPS, which responds when customers walk into participating retailers. As for AirTime, once it launched, the company’s app was bug-ridden and not very user-friendly. Users discovered Airtime employees were monitoring their video chats to filter inappropriate content. Also at issue, months after Airtime launched, user numbers were far below expectations.

Another example of success and failure is Zynga and Friendster. The former started with a simple poker game title and has since generated $1.5 billion. Friendster hasn’t been as fortunate: The site launched in early 2003 and quickly fell far behind its social networking competitors.

Check out the infographic below for more revelations on why 90 percent of startups fail.

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(Photo credit: Allmand Law)

Marissa Brassfield
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