/

Entrepreneurs: the natural trajectory of a start-up is failure

And yet, on the slides, it looks easy:

• You have an idea
• An MVP
• You build a team
• You explain your vision
• You build your product
• And you sell it

Except that 9 times out of 10, the startup doesn't make it and investors lose their money…

‍

Why do most startups fail?

‍

The main reasons for failure are well-known:

• Insufficient funding
• No product-market fit
• Competition taking over the market
• Business model not solid enough
• Founder conflicts…

To maximize your chances of success, you need to raise money and execute to perfection. That’s why it’s so difficult.

‍

‍

The reality of the market

‍

On the funding side, things are tough and startups have very little chance of raising capital; only the best make it. Depending on economic conditions and investor appetite, about a thousand startups raise a seed round in France. And then, on average, only 20% to 30% manage to raise a Series A. This, of course, varies depending on the "hot" sectors for VCs.

Then, if you have the money, you have to execute your vision.

And since it’s often your first time starting a company, you make plenty of mistakes and execution is difficult. Ultimately, neither you as CEO nor your investors know if you are a good entrepreneur, manager, or recruiter… Everyone makes mistakes and learns along the way.

This is precisely why second-time entrepreneurs have a better chance of success. They have already proven they know how to raise capital and execute. Ultimately, while few make it, the success stories are truly inspiring.

‍

‍

It’s a virtuous cycle, as successful entrepreneurs often go on to mentor and invest in young companies. It isn't said enough, but hats off to them!

We need these talented entrepreneurs to keep innovating!

‍

Need more advice for your start-up? Don't hesitate to contact us. :))