The document discusses reasons why startups fail and how to avoid failure. It analyzes internal causes like lacking proper market fit, developing the wrong product, or shortcomings of the entrepreneur. External causes include environmental changes. The document provides advice on properly selecting a market with long-term trends, developing a product that solves user needs, iterating quickly, and gaining traction before fundraising. The goal is to help entrepreneurs avoid common pitfalls and build successful startups.

1. WHY STARTUPS FAIL:
AND HOW YOURS CAN SUCCEED
NOVEMBER 6, 2012
DAVID FEINLEIB
THE BIG DATA GROUP THEBIGDATAGROUP.COM
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Copyright © 2012 David Feinleib

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3. WHAT IS FAILURE?
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5. IRONMAN FRANCE 2012
3.8KM Swim 180KM Bike 42KM Run
Participants 2500
Finishers 2035
81.4%
DNF 466
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6. HOW TO FINISH AN IRONMAN
1) Commit
2) Prepare
3) Survive
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7. HOW TO BUILD A SUCCESSFUL STARTUP
1) Commit
2) Prepare
3) Thrive
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8. WHY PEOPLE DON’T FINISH THE IRONMAN
Internal causes
1) Lack of preparation
2) Run out of energy
3) Run out of time
External causes
4) Mechanical failure
5) Accidents
6) Weather
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9. WHY STARTUPS FAIL
Internal causes
1) Market
2) Product
3) Entrepreneur
External causes
4) Environment changes
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10. MARKET
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11. PICK THE RIGHT MARKET, NOT JUST A BIG MARKET
Fast food in China is a huge market
That doesn’t mean you should pick it
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12. MARKETS: THE TREND IS YOUR FRIEND
1) Big Data
2) Cloud
3) Mobile
4) Social
Decade long trends driving change
Customers have to buy
Multiples are higher
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13. PRODUCT
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15. THE SEARCH FOR PRODUCT-MARKET FIT
1) Get out of the building
2) Listen to the data
3) Get to market
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16. DELIVER A TRULY GREAT PRODUCT
1) KISS: Keep it simple, stupid
One great feature trumps many good ones
2) Make it easy to use/buy
Build sales into the product
3) Understand your users
Build analytics into the product
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17. PRODUCT-MARKET FIT
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18. ENTREPRENEUR
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19. FAIL FAST
Was Odeo - podcasting
Was Burbn - mobile location checkin
Was PDA payments
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20. FUNDRAISING
1) Pitching burns time
2) Greed vs fear
3) Framing: buying, not selling
4) Vision or traction
5) You are the product
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21. TAKING RISK IS THE FIRST STEP
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22. FOR MORE INFORMATION
David Feinleib
dave@thebigdatagroup.com
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