What is the survival rate of startups? The question is ongoing lately amid reduced confidence among investors in the segment. Meanwhile, CEO of Fintech unicorn CRED, Kunal Shah, shook up the community with his LinkedIn post. He wrote that most of the startups are destined to die and even the funded ones are to face the same. It is a harsh truth and many startups would like to ignore it but cannot afford to overlook.
The message of Shah is simple as well as profound. The success of startup is rare and often feels almost miraculous. He argues that the startups are lately facing high failure rates as they are struggling to handle uncertainty and instability.
He urged that the startups need more than the financial backing. The young companies need teams of problem solvers who thrive in ambiguity. The failure rate is more with such startups which seek stability and dislike unpredictability. He added that startups need problem solvers.
HelloPM founder Ankit Shukla pointed out that problem-solving skills are essential and stability is also important. Most people with great problem-solving skills still want stability for personal or other reasons. He said that it is the responsibility of leadership to balance the desires of employees for stability with the need for agility of startups.
One commentator highlighted on the LinkedIn post that startups require more than just miraculous conditions to succeed. He wrote that the startups need real problems first and the focus should be on generating value for customers as well as achieving profitability. The startups should not rely on miracles. The success of startups hinges on its ability to solve genuine problems and simultaneously deliver tangible value.
