It’s no secret that 90% of startups don’t succeed.
Time and time again we meet with founders who have made the same common mistakes:
- Built their products before validating the problem they’re trying to solve and confirming there’s a substantial need in the market.
- Wasted lots of time IN the business instead of ON the business.
- Prioritized the perfection of the product over customer validation and feedback.
- Got distracted by shiny objects that don’t “move the needle.”
More often than not, founders lack the strategic guidance and collaboration needed to put them in the right direction. Perhaps this is why nearly 67% of startups stall at some point in the VC process and fail to exit or raise follow-on funding.
Combining research with our own experience, we’ve determined the top reasons why startups fail:
Venture Studios mitigate the risk of investing in a startup and produce more success stories.
The new model for partnering with high-potential founders is the venture studio, which provides capital plus all the other key capabilities to supplement the early team and scale faster by avoiding common mistakes founders make early on.
Our studio team has the expertise to be able to quickly see what works and what doesn’t while spending as little capital as possible. If our experienced operators determine that the product-market fit is not there (or is not scalable), then they can help founders figure out what the right fit is and do it fast. Check out our infographic on the three reasons why venture studios are the future of company building to learn more.
OC4 Venture Studio welcomes referrals to founders who might want to partner with us to build great companies. We also welcome aligned investors who would like to learn more about opportunities to work with us. Contact us!
