These survey results sums up the case of Tech Startups very nicely in pictures:
This leads one to the unstartling conclusion that tech startups -- needing a product to sell -- focus their few hands on product development. Without a revenue stream, even minor expenses, over a short time, will prove detrimental to the enterprise. The longer view is vital, but often only gained through difficult experience.
Details of the survey may be found here at FounderSpeak.
- Most tech startups employ one or two people and subsist on their own savings.
- They spend virtually nothing.
- Half die in the first six months.
- Two-thirds aren't focused on selling their product (yet).
- Most think they'll break even in under a year but the vast majority do not.
- Only 20% have problems with sales and marketing. Most find the snags occur in product development.
This leads one to the unstartling conclusion that tech startups -- needing a product to sell -- focus their few hands on product development. Without a revenue stream, even minor expenses, over a short time, will prove detrimental to the enterprise. The longer view is vital, but often only gained through difficult experience.
Details of the survey may be found here at FounderSpeak.
RSS Feed