{
  "version": "1.0",
  "license": "CC BY 4.0 — attribution: IdeaProof (https://ideaproof.io)",
  "count": 13,
  "generated_at": "2026-08-27T00:03:33.604Z",
  "methodology_url": "https://ideaproof.io/startup-failure-database/methodology",
  "records": [
    {
      "id": "cbi-90pct",
      "stat": "~90%",
      "claim": "of startups ultimately fail — including ~10% that fail in the first year and the rest across the following decade.",
      "scope": "all",
      "source": "Startup Genome / CB Insights aggregate",
      "sourceUrl": "https://www.cbinsights.com/research/report/startup-failure-reasons-top/",
      "publishedYear": 2024
    },
    {
      "id": "bls-survival",
      "stat": "~35%",
      "claim": "of new US employer businesses survive past their 10th year (Bureau of Labor Statistics BED series).",
      "scope": "all",
      "source": "US Bureau of Labor Statistics — BED",
      "sourceUrl": "https://www.bls.gov/bdm/entrepreneurship/entrepreneurship.htm",
      "publishedYear": 2024
    },
    {
      "id": "graduation-a-to-b",
      "stat": "~35%",
      "claim": "of Series A rounds ever graduate to Series B; the rest run out of runway or pivot without a follow-on.",
      "scope": "stage",
      "source": "CB Insights Venture Capital Funnel",
      "sourceUrl": "https://www.cbinsights.com/research/venture-capital-funnel-2/",
      "publishedYear": 2023
    },
    {
      "id": "reason-no-market",
      "stat": "35%",
      "claim": "of post-mortem founders cite \"no market need\" as a top-2 reason their startup failed (largest single category).",
      "scope": "reason",
      "match": {
        "reason": [
          "no market",
          "market need"
        ]
      },
      "source": "CB Insights — Top 12 Reasons Startups Fail",
      "sourceUrl": "https://www.cbinsights.com/research/report/startup-failure-reasons-top/",
      "publishedYear": 2021
    },
    {
      "id": "reason-cash",
      "stat": "38%",
      "claim": "of failed startups cite \"ran out of cash / could not raise\" as the primary trigger — the most common terminal event across cycles.",
      "scope": "reason",
      "match": {
        "reason": [
          "cash",
          "ran out",
          "runway"
        ]
      },
      "source": "CB Insights — Top 12 Reasons Startups Fail",
      "sourceUrl": "https://www.cbinsights.com/research/report/startup-failure-reasons-top/",
      "publishedYear": 2021
    },
    {
      "id": "reason-team",
      "stat": "14%",
      "claim": "of post-mortem founders identify \"wrong team composition\" as a top failure driver — usually a missing technical or commercial co-founder.",
      "scope": "reason",
      "match": {
        "reason": [
          "team"
        ]
      },
      "source": "CB Insights — Top 12 Reasons Startups Fail",
      "sourceUrl": "https://www.cbinsights.com/research/report/startup-failure-reasons-top/",
      "publishedYear": 2021
    },
    {
      "id": "reason-competition",
      "stat": "20%",
      "claim": "of failures name \"getting outcompeted\" as a top-3 cause; concentration typically follows a winner-take-most dynamic within 5–7 years of category creation.",
      "scope": "reason",
      "match": {
        "reason": [
          "outcompeted",
          "competition"
        ]
      },
      "source": "CB Insights — Top 12 Reasons Startups Fail",
      "sourceUrl": "https://www.cbinsights.com/research/report/startup-failure-reasons-top/",
      "publishedYear": 2021
    },
    {
      "id": "reason-fraud",
      "stat": "<3%",
      "claim": "of failures involve prosecutable fraud, but these cases account for a disproportionate share of investor losses and media coverage.",
      "scope": "reason",
      "match": {
        "reason": [
          "fraud",
          "mismanagement"
        ]
      },
      "source": "IdeaProof analysis of court filings 2015–2024",
      "sourceUrl": "/startup-failure-database/methodology",
      "publishedYear": 2024
    },
    {
      "id": "ind-consumer-hw",
      "stat": "~97%",
      "claim": "of venture-backed consumer hardware startups do not reach a profitable exit within 10 years — hardware requires atypical capital efficiency to survive.",
      "scope": "industry",
      "match": {
        "industry": [
          "hardware",
          "consumer electronics",
          "device",
          "iot"
        ]
      },
      "source": "PitchBook Emerging Tech Research",
      "sourceUrl": "https://pitchbook.com/news/reports",
      "publishedYear": 2023
    },
    {
      "id": "ind-crypto",
      "stat": "~80%",
      "claim": "of crypto/Web3 projects launched in the 2021 cycle were inactive or delisted within 24 months of peak market cap.",
      "scope": "industry",
      "match": {
        "industry": [
          "crypto",
          "web3",
          "blockchain"
        ]
      },
      "source": "CoinGecko + Nansen dataset analysis",
      "sourceUrl": "https://www.coingecko.com/research",
      "publishedYear": 2023
    },
    {
      "id": "ind-fintech",
      "stat": "~75%",
      "claim": "of consumer fintech startups launched 2018–2021 either shut down, were acqui-hired, or downsized to a lifestyle business by 2024.",
      "scope": "industry",
      "match": {
        "industry": [
          "fintech",
          "finance",
          "banking",
          "payments"
        ]
      },
      "source": "FT Partners / a16z fintech reports",
      "sourceUrl": "https://a16z.com/fintech/",
      "publishedYear": 2024
    },
    {
      "id": "ind-food-delivery",
      "stat": "~85%",
      "claim": "of food-delivery and quick-commerce startups founded in the 2020–2021 boom were shut down or absorbed within 3 years — a textbook winner-take-most category.",
      "scope": "industry",
      "match": {
        "industry": [
          "food",
          "delivery",
          "grocery",
          "quick commerce"
        ]
      },
      "source": "Sifted / CB Insights coverage",
      "sourceUrl": "https://sifted.eu/",
      "publishedYear": 2024
    },
    {
      "id": "ind-healthtech",
      "stat": "~70%",
      "claim": "of digital-health startups fail to reach breakeven; reimbursement complexity + regulatory approvals extend runway needs beyond typical VC horizons.",
      "scope": "industry",
      "match": {
        "industry": [
          "health",
          "medical",
          "biotech",
          "pharma"
        ]
      },
      "source": "Rock Health State of Digital Health",
      "sourceUrl": "https://rockhealth.com/insights/",
      "publishedYear": 2023
    }
  ]
}