Top 20 Reasons Startups Fail
The graph above shows back when they only had 101 tanked dreams in the data set. #1 cause of wreckage: "No Market Need".
Potential AFI Investors take note: that's why one of our key "qualification" metrics is that the company be up and running, products on the market, and high proven customer demand. Which, interestingly, we're actually seeing a lot of. In the food subsegment of the LOHAS (lifestyles of health and sustainability) market, many, many of the firms that come to us have this problem: "Customers want 5-10 times what I can produce, but I need working capital / equipment / people to satisfy demand." That's a good problem to have!
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