Muhammad Hameed’s Post

There are multiple valleys of death for a startup. 💀 ☠ ⚰ ⚱ Startups around the world are shutting down at an alarming rate. Reason: The age-old, proven reason—running out of money. Running out of money is the #1 reason startups fail. Nothing else. Out of 28 million companies studied, only 17,000 have crossed $50M in revenue and survived. It's important for companies to understand that there are multiple valleys of death for startups. Lesson: Grow slow and steady, and become cash-flow positive as soon as you can. Educate your investors. Don't succumb to the pressure from investors to grow at any cost. #startups #venturecapital

The US has more startups than VCs can support 2024 may well become the year of the bootstrapped founder. The startup “mass extinction event” that doomsayers have predicted for two years is likely to ramp up in 2024. New founders facing a brutal funding environment may instead opt to bootstrap their growth. Over 55,000 VC-backed companies are operating in the US right now, according to the latest PitchBook-NVCA Venture Monitor. Many of them are aggressively competing for funding in a slow dealmaking landscape. At the same time, over 2,000 VC firms effectively halted making new investments in startups in the first nine months of 2023. Approximately 3,200 startups failed in 2023, and there’s even a burgeoning industry dedicated to helping founders wind down their companies. Data on capital availability, seed deals and exits all point to one conclusion: The US has too many startups. Source: Pitchbook

🌼 OPPORTUNITY ONLY COMES WITH PREPARATION In the vibrant startup environment of today, seizing opportunities promptly is a crucial factor for success. However, achieving success is not merely about being quick, but also about having a vision and the courage to pursue it. To step out of your comfort zone, young founders need to be well-prepared with practical knowledge and specific directions. And I believe that the ‘kindergarten’ for your early-stage Tech Startup - TechYouth Incubator 2024 - is where aspiring founders can find those resources. Here, young startups will get from a viable idea to your first customers in an environment where it’s safe to fail. So, if there is a problem you really want to solve by ‘building something real’, figure it out right here https://shorturl.at/cevG7. (The application for Early Birds is open until 20/4). #Cando #Realimpact #Buildreal #Startup #TYIncubator UpYouth - Tech Startup Ecosystem

Timing is Everything

93% of startups fail. But what happens next? Our team at SimpleClosure analyzed hundreds of startup shutdowns to understand the real story behind the statistics. Here’s what we found 👇 Key insights from our 2024 State of Startup Shutdowns report: • 74% never make it past seed stage • Nearly half of all shutdowns this year raised their last round in 2022 • 60% don't have capital to return to investors • Tech hubs see the highest concentration of failures The findings are sobering, but they’re also a peak into the realities of the startup ecosystem. Swipe through for the full analysis 👉 Get the complete report at https://lnkd.in/gMC8K6uk #Startups #VentureCapital #StartupLessons  

Startups in 'dead pool' down 99.8% this year, 'zombies' a new threat Homegrown micro-blogging platform Koo became the most recent entrant into the startup ‘dead pool’ after shutting its operations last week. However, startups shutting shop – a trend exacerbated by the so-called funding winter – have declined by a massive 99.8 per cent this year. Investors say that the wave of startup shutdowns over the last few years was a “necessary cleanup” and founders are now focused on improving their operational metrics. Yet, the startup world may not be completely out of the woods yet, as ‘zombie’ startups have emerged as a new threat. #Startup #Dead pool #Zombie #news

The paradigm of “fail fast” doesn’t apply to nascent-stage startups. Founders of early-stage startups (with customers, product and investment) have a business at risk of failure. By contrast, founders of nascent-stage startups (just the kernel of an idea but no customers, no product and no funding) are running a project of exploration to decide whether to start a business. You can’t “fail” at exploration. You can only be curious and find whatever you find. Often you discover something totally different than originally intended — is that a “failure”? If you’re a founder with a nascent startup, embrace the paradigm shift. Use the tools that are helpful right now. Avoid getting distracted by “fail fast” and other tools that don’t apply at the nascent stage. 

The Anders Startup Funding and Outlook Report highlights a significant hurdle for St. Louis startups: securing late-stage funding. Discover why local startups face funding challenges.

Interesting Startup Statistics: 9 out of 10 startups fail, a misleading startup statistic in the context of startups because these figures focus on all new businesses, both startups and traditional businesses (like a hair salon). #TexasBusinessIncubationCenter #StartupIncubationHub #Incubators  #StartupCommunity #StartupNepal_2081

Most Startups are destined to die. Even the funded ones. Startup success is mostly a miracle. And miracle doesn't happen with team that's looking for stability and dislike ambiguity. Having such people in startups mostly causes faster death. Startups need Problem Solvers ! #success #startup #newidea