The percentage of startups that fail can vary significantly depending on the source, but a commonly cited statistic is that around 90% of startups fail. The exact percentage can differ based on the industry, market conditions, and geographical location.

Here’s a general breakdown of startup failure rates by various business sectors:

Overall startup failure rate:

• General Failure Rate: ~90% of all startups fail.
• First-year failure rate: Approximately 10% of startups fail within the first year.
• Five-year failure rate: Around 50% fail by the fifth year.
• Ten-year failure rate: About 70% of startups fail within ten years.

Failure rates by area:

• Healthcare and Biotech
  • Failure Rate: ~80%
  • Reasons: Extensive regulatory requirements, long product development cycles, and high capital needs make it challenging. 
• Technology
  • Failure Rate: ~63%
  • Reasons: High competition, rapid technological advancements, and significant R&D costs contribute to the high failure rate.

• No market need: We validate your product ideas through comprehensive market analysis, ensuring alignment with real-world healthcare demands.
• Ran out of cash: We format startups to become attractive to investors and grant authorities, preventing cash flow issues.
• Not the right team: We can help build balanced teams with the necessary expertise and cohesion to drive your startup forward.
• Got outcompeted: Based on sound market insights, we help you understand how to strategically position your specific technology to keep your startup ahead of competitors.
• Pricing/cost issues: We help you develop pricing strategies in the different medical market segments that ensure profitability while remaining competitive in the healthcare market.
• Poor product: We assist in refining products to meet the highest standards of quality and user needs, reducing the risk of poor market reception.
• Lack of a business model: We help you refine your business model to the complexities of the healthcare industry.
• Poor marketing: While we don’t do marketing, we help you conduct marketable pilot projects that help drive adoption and growth.
• Ignore customers: We never work without feedback from doctors, patients, payors and industry experts, ensuring your product evolves in line with user needs and expectations.
• Product mis-timed: We help you identify healthcare megatrends to ensure your product is not struggling against the current.