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Why do so many startups fail within the first two years?

Ideas are a dime a dozen and that's why a lot of startups fail within the first two years: they cannot get past the ideation phase to execute and test the market. I listen to at least two pitches from founders every week and I see how persistent they are. Are they going to follow up? Or will they just pitch and then they're gone without ever following up? There's a lot of innovation happening, but it's all what I call ephemeral innovation. A lot of these ideas die out because they cannot get past the pre-seed stage, or even making a prototype and testing the market. The startup market is flaky but that's how innovation happens. The cream rises to the top and if you are lucky enough to get the support of investors and the market, you can build something more permanent than a one year deal.

Anonymous Author
Ideas are a dime a dozen and that's why a lot of startups fail within the first two years: they cannot get past the ideation phase to execute and test the market. I listen to at least two pitches from founders every week and I see how persistent they are. Are they going to follow up? Or will they just pitch and then they're gone without ever following up? There's a lot of innovation happening, but it's all what I call ephemeral innovation. A lot of these ideas die out because they cannot get past the pre-seed stage, or even making a prototype and testing the market. The startup market is flaky but that's how innovation happens. The cream rises to the top and if you are lucky enough to get the support of investors and the market, you can build something more permanent than a one year deal.
3 upvotes
Anonymous Author
It's all about execution and a lot of startups get into this valuation trap. They’re looking to leverage and create the valuation incentive but they're missing the boat, which is solving a customer problem. If you can solve a significant customer problem, word spreads and that customer becomes your credibility and differentiation, which will pull all kinds of funding and valuation to support your initiatives. In my experience, we did a good job of executing but we ran into a couple of brick walls that we could not anticipate. There are a lot of things I would've done differently, and we continue to look for those things. But the one thing that I will always do to create sustainability in a startup is to look for the customer and focus on solving their problem.
1 upvotes
Anonymous Author
Lack of new and unique idea,
1 upvotes