Startup Failure Database 2026
1,091 documented failure events. $512B in net capital loss quantified from 861 entries with a comparable loss method. How we count →
- 1,091documented failure events
Startup Failure Statistics 2026
CB Insights, Failory, Carta & public filings — refreshed for 2026 with the latest failure patterns and industry benchmarks.
Top Reasons Startups Fail
% of post-mortems citing each cause (multiple causes per startup)
Failure Rate by Industry
% of startups that fail within 5 years, by sector
Failure Rate by Funding Stage
% that fail before reaching the next round — the "Valley of Death" peaks at Pre-seed
Source: CB Insights, Failory, Carta 2026.
Startup Failure Database
Search, filter and explore 1,091 documented failure events — 50 full post-mortems, 339 verified case studies. Each record separates what the entity was from what happened to it. Read the methodology →
FastlyFastlyFailure Pattern Analysis
Across the 1000 true failure events in the database, five recurring patterns explain most of the collapses. The percentages below reflect published CB Insights / Failory / Carta post-mortem tallies, not proprietary IdeaProof measurements.
42%
of failures
Startup Failure Rate by Industry 2026
Comprehensive data on how failure rates vary across industries and time horizons.
| Industry | 1-Year Failure | 5-Year Failure | 10-Year Failure | Avg Funding Lost |
|---|---|---|---|---|
| Food & Restaurant | 60% | 80% | 90% | $1.2M |
| Retail | 53% | 75% | 88% | $2.1M |
| Real Estate | 42% | 65% | 82% | $3.5M |
| Construction | 48% | 70% | 85% | $1.8M |
| Transportation | 40% | 68% | 84% | $5.2M |
| Healthcare/Biotech | 45% | 70% | 85% | $8.3M |
| FinTech | 42% | 68% | 83% | $12.5M |
| SaaS/Software | 38% | 63% | 80% | $6.8M |
| AI/ML | 45% | 72% | 87% | $15.6M |
| Crypto/Web3 | 50% | 78% | 92% | $18.2M |
Sources: Bureau of Labor Statistics, Failory, CB Insights, Carta 2026 reports.
Timeline: Biggest Failure by Year (2011–2024)
The costliest startup failure each year over the past decade.
2011
Solyndra
$1.1B lost
2013
Better Place
$850M lost
2015
Fab.com
$336M lost
2017
Jawbone
$930M lost
2018
Theranos
$700M lost
2019
WeWork IPO fail
$38B valuation drop lost
2020
Quibi
$1.75B lost
2021
Katerra
$2B lost
2022
FTX
$32B lost
2023
Convoy
$900M lost
2024
Byju's
$22B valuation collapse lost
Could These Failures Have Been Prevented?
Yes. Research shows that 70%+ of startup failures are caused by preventable mistakes. Here's a validation checklist based on our analysis of 1091+ failures:
Validate market demand with 50+ customer interviews before building
Confirm willingness to pay with pre-sales or LOIs, not just surveys
Calculate unit economics: ensure positive contribution margin per customer
Analyze competition honestly—if 3+ well-funded players exist, differentiate or die
Set a realistic runway: plan for 18+ months of cash at current burn rate
Build a governance structure: independent board members, regular financial audits
Test your MVP with real users before scaling—aim for 40%+ "very disappointed" score
Hire for skill gaps, not just pedigree. One domain expert beats 10 generalists
Monitor retention metrics weekly. Growth without retention is a leaky bucket
Have a clear path to profitability. "Grow now, monetize later" requires a concrete plan
Explore the Failure Ecosystem
Dive deeper into startup failures by industry, country, year, and analysis type.
Why Startups Fail: 10 Reasons
Data-driven breakdown of the top failure causes
Biggest Failures in History
25 most spectacular failures ranked by value lost
Fintech Failures
Neobanks, crypto, and lending collapses
AI Startup Failures
The first AI reckoning (2023-2026)
Failed Startups in USA
Silicon Valley graveyard: $150B+ destroyed
Failed Startups in India
Byju's and the growth-at-all-costs culture
EV & Automotive Failures
Why building cars is the hardest startup category
How to Avoid Failure
7 fatal mistakes & how AI prevents them
Failure Analysis Deep Dive
Charts, patterns, and cost of failure
Frequently Asked Questions
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