159+ Cases Analyzed

    Top Startup Failure Database 2026

    93% of startups fail. Learn from their $100B+ in mistakes. The most comprehensive, free, searchable startup failure database on the web.

    Updated:
    25 min read
    35 verified sources

    93%

    Startups Fail

    $100B+

    Funding Lost

    42%

    No Market Need

    20 mo

    Avg Lifespan

    Startup Failure Statistics 2026

    Data compiled from CB Insights, Failory, Carta, and public filings. Updated for 2026 with the latest failure patterns and industry benchmarks.

    Top 10 Reasons Startups Fail

    Source: CB Insights, Failory 2026 reports. Percentages sum to >100% as startups can have multiple failure reasons.

    Failure Rate by Industry (5-Year)

    0%25%50%75%100%Food &RestaurantRetailRealEstateConstructionTransportationHealthcare/BiotechFinTechSaaS/SoftwareAI/MLCrypto/Web3

    Failure Rate by Funding Stage

    Pre-seedSeedSeries ASeries BSeries C+0%20%40%60%80%

    The "Valley of Death" between Seed and Series A sees the sharpest drop in survival rates.

    Startup Failure Database

    Browse, search, and filter 159+ startup failures. Click any entry to read the full analysis.

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    Showing 159 of 159 startups

    Failure Pattern Analysis

    We analyzed all 159+ failures and identified 5 recurring patterns. Understanding these patterns is the first step to avoiding them.

    42%

    of failures

    No Market Need

    The #1 startup killer. 42% of startups fail because they build something nobody wants.

    Examples: Quibi, Juicero, Fast, Homejoy, Secret

    Prevention: Validate demand before building. Use customer interviews, landing page tests, and pre-sales to confirm willingness to pay.

    29%

    of failures

    Ran Out of Cash

    Running out of money before achieving profitability or the next funding milestone.

    Examples: Bird, Convoy, Canoo, Shyp, Beepi

    Prevention: Model your runway conservatively. Cut costs early when metrics underperform. Always raise before you need to.

    23%

    of failures

    Wrong Team

    Co-founder conflicts, skill gaps, or leadership failures that derail execution.

    Examples: WeWork, Theranos, Byju's, Stability AI, IRL

    Prevention: Evaluate team composition honestly. Ensure diverse skills, aligned values, and proper governance structures.

    19%

    of failures

    Got Outcompeted

    Incumbents or better-funded competitors capturing the market.

    Examples: Rdio, Jawbone, MoviePass, Fast, Inflection AI

    Prevention: Build defensible moats: network effects, switching costs, proprietary data, or unique distribution.

    18%

    of failures

    Pricing Issues

    Charging too little, too much, or using an unsustainable pricing model.

    Examples: MoviePass, Pets.com, Homejoy, Bird, Fab.com

    Prevention: Test pricing early with real customers. Ensure unit economics are positive before scaling.

    Startup Failure Rate by Industry 2026

    Comprehensive data on how failure rates vary across industries and time horizons.

    Industry1-Year Failure5-Year Failure10-Year FailureAvg Funding Lost
    Food & Restaurant60%80%90%$1.2M
    Retail53%75%88%$2.1M
    Real Estate42%65%82%$3.5M
    Construction48%70%85%$1.8M
    Transportation40%68%84%$5.2M
    Healthcare/Biotech45%70%85%$8.3M
    FinTech42%68%83%$12.5M
    SaaS/Software38%63%80%$6.8M
    AI/ML45%72%87%$15.6M
    Crypto/Web350%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 159+ 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

    Frequently Asked Questions