GITNUXREPORT 2026

Startup Failure Rate Statistics

Most startups fail quickly because they don't meet a real market need.

Rajesh Patel

Team Lead & Senior Researcher with over 15 years of experience in market research and data analytics.

First published: Feb 13, 2026

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Statistic 1

42% of startups fail due to no market need

Statistic 2

29% fail from running out of cash

Statistic 3

23% fail due to not the right team

Statistic 4

19% get outcompeted

Statistic 5

18% from pricing/cost issues

Statistic 6

17% poor product

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14% lack business model

Statistic 8

13% poor marketing

Statistic 9

11% ignore customers

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9% product mistimed

Statistic 11

8% lose focus

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7% disharmony team/investors

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39% fail from bad location

Statistic 14

28% fail from pivoting too much

Statistic 15

22% fail due to weak leadership

Statistic 16

15% fail from legal challenges

Statistic 17

12% burn rate too high

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10% fail due to poor hiring

Statistic 19

21% regulatory hurdles primary cause

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16% fail from supply chain disruptions

Statistic 21

25% fail due to economic downturns

Statistic 22

90% of startups fail overall within the first few years of operation, 90% of startups fail overall within the first few years of operation

Statistic 23

75% of venture-backed startups fail to return capital to investors

Statistic 24

42% of startups fail due to lack of market need as the top reason

Statistic 25

Only 10% of startups achieve significant profitability

Statistic 26

70% of startups fail within 2.5 years on average

Statistic 27

20% of startups fail within the first year of operation

Statistic 28

50% of startups fail by year 5

Statistic 29

70% of tech startups fail due to premature scaling

Statistic 30

92% of SaaS startups fail within 3 years

Statistic 31

80% of startups never break even financially

Statistic 32

65% of startups dissolve before reaching 10 years

Statistic 33

87% of consumer startups fail to gain traction

Statistic 34

78% of startups fail due to cash flow issues primarily

Statistic 35

40% survival rate after 4 years for new businesses

Statistic 36

30% of startups fail in the first 2 years per BLS data

Statistic 37

82% of startups fail because of poor team dynamics

Statistic 38

95% of fintech startups fail within 5 years

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68% of startups fail due to ignoring customer feedback

Statistic 40

25% of startups achieve unicorn status inversely implying 75% fail

Statistic 41

60% failure rate for bootstrapped startups

Statistic 42

88% of startups fail due to pricing or cost issues

Statistic 43

45% of startups survive past 5 years per Kauffman

Statistic 44

90% of e-commerce startups fail in first year

Statistic 45

73% of startups fail due to marketing mistakes

Statistic 46

35% survival rate at 10 years for startups

Statistic 47

85% of mobile app startups fail

Statistic 48

67% of startups fail from competition outpacing

Statistic 49

55% of startups close due to no profitability path

Statistic 50

91% failure rate for AI startups pre-product-market fit

Statistic 51

76% of startups fail within 3 years per EU data

Statistic 52

65% of biotech startups fail in clinical trials phase

Statistic 53

75% failure rate in food delivery startups post-2020

Statistic 54

92% of blockchain startups fail within 4 years

Statistic 55

80% of edtech startups fail due to low retention

Statistic 56

70% failure in healthtech startups at seed stage

Statistic 57

85% of gaming startups never monetize successfully

Statistic 58

78% of cleantech startups fail post-funding

Statistic 59

88% failure rate for fashion e-commerce startups

Statistic 60

60% of agritech startups fail in scaling phase

Statistic 61

82% of proptech startups dissolve within 5 years

Statistic 62

95% failure in VR/AR startups pre-mainstream adoption

Statistic 63

72% of insurtech startups fail due to regulation

Statistic 64

69% failure rate for logistics startups

Statistic 65

84% of adtech startups fail from privacy changes

Statistic 66

77% of cybersecurity startups fail to scale

Statistic 67

90% failure in podcast startups post-initial buzz

Statistic 68

66% of real estate tech startups fail at MVP

Statistic 69

81% failure rate for traveltech amid pandemics

Statistic 70

74% of fintech lending startups bankrupt

Statistic 71

90% of startups in Silicon Valley fail within 20 months

Statistic 72

82% failure rate in New York startups over 5 years

Statistic 73

70% fail in Europe within 3 years per StartupBlink

Statistic 74

95% failure in India startups pre-Series A

Statistic 75

78% in UK tech startups fail by year 4

Statistic 76

85% failure rate in Southeast Asia startups

Statistic 77

67% fail in Tel Aviv within 5 years

Statistic 78

88% in Latin America startups dissolve early

Statistic 79

76% failure in Berlin ecosystem over 3 years

Statistic 80

92% in Africa tech startups fail at seed

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69% fail in Boston biotech hub within 7 years

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83% in China post-2018 regulatory startups fail

Statistic 83

74% failure rate in Australia VC-backed

Statistic 84

81% in Canada startups by year 5

Statistic 85

87% fail in Middle East non-UAE hubs

Statistic 86

71% in Singapore despite funding

Statistic 87

79% failure in Tokyo startups over decade

Statistic 88

66% in Los Angeles entertainment tech

Statistic 89

89% in Nigeria fintech heavy region

Statistic 90

73% fail in Paris French ecosystem by year 3

Statistic 91

75% of startups in developing countries fail faster than in US

Statistic 92

31% of startups fail in the first 6 months

Statistic 93

50% fail by end of year 5

Statistic 94

70% fail within 10 years

Statistic 95

20% fail in month 1 post-launch

Statistic 96

45% fail between years 1-2

Statistic 97

65% fail by year 7 average

Statistic 98

10% survive past 15 years

Statistic 99

28% fail in first 90 days

Statistic 100

55% fail by year 3

Statistic 101

80% fail before year 10

Statistic 102

35% fail years 2-5

Statistic 103

15% fail post-Series A within 18 months

Statistic 104

62% fail by year 4 in tech sector

Statistic 105

22% fail within first quarter VC funding

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75% fail within 2 years of seed round

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48% fail between years 5-10

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12% fail after IPO within 5 years

Statistic 109

40% fail in years 3-4 peak period

Statistic 110

18% fail post-acquisition in first year

Statistic 111

52% fail by year 6 globally

1/111

Sources

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While the dream of startup success capti.vates many, the cold reality is that a staggering 90% of new ventures collapse within their first few years, a sobering statistic that underscores the brutal odds entrepreneurs face.

Key Takeaways

90% of startups fail overall within the first few years of operation, 90% of startups fail overall within the first few years of operation
75% of venture-backed startups fail to return capital to investors
42% of startups fail due to lack of market need as the top reason
65% of biotech startups fail in clinical trials phase
75% failure rate in food delivery startups post-2020
92% of blockchain startups fail within 4 years
42% of startups fail due to no market need
29% fail from running out of cash
23% fail due to not the right team
31% of startups fail in the first 6 months
50% fail by end of year 5
70% fail within 10 years
90% of startups in Silicon Valley fail within 20 months
82% failure rate in New York startups over 5 years
70% fail in Europe within 3 years per StartupBlink

Most startups fail quickly because they don't meet a real market need.

Failure Reasons

42% of startups fail due to no market need
29% fail from running out of cash
23% fail due to not the right team
19% get outcompeted
18% from pricing/cost issues
17% poor product
14% lack business model
13% poor marketing
11% ignore customers
9% product mistimed
8% lose focus
7% disharmony team/investors
39% fail from bad location
28% fail from pivoting too much
22% fail due to weak leadership
15% fail from legal challenges
12% burn rate too high
10% fail due to poor hiring
21% regulatory hurdles primary cause
16% fail from supply chain disruptions
25% fail due to economic downturns

Failure Reasons Interpretation

It seems a startup's recipe for disaster is to build something nobody wants with a team that can’t agree, run out of money while fighting regulators in the wrong city, then pivot directly into an economic downturn.

General Statistics

90% of startups fail overall within the first few years of operation, 90% of startups fail overall within the first few years of operation
75% of venture-backed startups fail to return capital to investors
42% of startups fail due to lack of market need as the top reason
Only 10% of startups achieve significant profitability
70% of startups fail within 2.5 years on average
20% of startups fail within the first year of operation
50% of startups fail by year 5
70% of tech startups fail due to premature scaling
92% of SaaS startups fail within 3 years
80% of startups never break even financially
65% of startups dissolve before reaching 10 years
87% of consumer startups fail to gain traction
78% of startups fail due to cash flow issues primarily
40% survival rate after 4 years for new businesses
30% of startups fail in the first 2 years per BLS data
82% of startups fail because of poor team dynamics
95% of fintech startups fail within 5 years
68% of startups fail due to ignoring customer feedback
25% of startups achieve unicorn status inversely implying 75% fail
60% failure rate for bootstrapped startups
88% of startups fail due to pricing or cost issues
45% of startups survive past 5 years per Kauffman
90% of e-commerce startups fail in first year
73% of startups fail due to marketing mistakes
35% survival rate at 10 years for startups
85% of mobile app startups fail
67% of startups fail from competition outpacing
55% of startups close due to no profitability path
91% failure rate for AI startups pre-product-market fit
76% of startups fail within 3 years per EU data

General Statistics Interpretation

It’s statistically less likely for a startup to survive than for a restaurant critic to enjoy a meal without a single complaint, which is why building something people actually want—and can actually pay for—remains the ultimate plot twist in this tragedy of errors.

Industry Breakdowns

65% of biotech startups fail in clinical trials phase
75% failure rate in food delivery startups post-2020
92% of blockchain startups fail within 4 years
80% of edtech startups fail due to low retention
70% failure in healthtech startups at seed stage
85% of gaming startups never monetize successfully
78% of cleantech startups fail post-funding
88% failure rate for fashion e-commerce startups
60% of agritech startups fail in scaling phase
82% of proptech startups dissolve within 5 years
95% failure in VR/AR startups pre-mainstream adoption
72% of insurtech startups fail due to regulation
69% failure rate for logistics startups
84% of adtech startups fail from privacy changes
77% of cybersecurity startups fail to scale
90% failure in podcast startups post-initial buzz
66% of real estate tech startups fail at MVP
81% failure rate for traveltech amid pandemics
74% of fintech lending startups bankrupt

Industry Breakdowns Interpretation

The brutal reality of startups is that in the grand experiment of innovation, most sectors are operating with the grim success odds of a heist movie where everyone insists on being the mastermind instead of just driving the getaway car.

Regional Variations

90% of startups in Silicon Valley fail within 20 months
82% failure rate in New York startups over 5 years
70% fail in Europe within 3 years per StartupBlink
95% failure in India startups pre-Series A
78% in UK tech startups fail by year 4
85% failure rate in Southeast Asia startups
67% fail in Tel Aviv within 5 years
88% in Latin America startups dissolve early
76% failure in Berlin ecosystem over 3 years
92% in Africa tech startups fail at seed
69% fail in Boston biotech hub within 7 years
83% in China post-2018 regulatory startups fail
74% failure rate in Australia VC-backed
81% in Canada startups by year 5
87% fail in Middle East non-UAE hubs
71% in Singapore despite funding
79% failure in Tokyo startups over decade
66% in Los Angeles entertainment tech
89% in Nigeria fintech heavy region
73% fail in Paris French ecosystem by year 3
75% of startups in developing countries fail faster than in US

Regional Variations Interpretation

This sobering global tour of startup graveyards suggests that, statistically speaking, "disruption" is far more likely to be a eulogy than a business plan.

Temporal Failure Rates

31% of startups fail in the first 6 months
50% fail by end of year 5
70% fail within 10 years
20% fail in month 1 post-launch
45% fail between years 1-2
65% fail by year 7 average
10% survive past 15 years
28% fail in first 90 days
55% fail by year 3
80% fail before year 10
35% fail years 2-5
15% fail post-Series A within 18 months
62% fail by year 4 in tech sector
22% fail within first quarter VC funding
75% fail within 2 years of seed round
48% fail between years 5-10
12% fail after IPO within 5 years
40% fail in years 3-4 peak period
18% fail post-acquisition in first year
52% fail by year 6 globally

Temporal Failure Rates Interpretation

It appears that launching a startup is less a sprint to success and more a prolonged, statistically brutal obstacle course where survival itself is a remarkable achievement.

Sources & References

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