Startup Success Factors Overview

Startup Success Factors

• The most important factor for startup success is timing (42% of success, 42% of failure), even more important than the idea itself
• Team and execution come in second, as adaptability to customer feedback is crucial
• Idea, differentiability, and uniqueness are also important, but surprisingly rank third
• Business model is less important, as it can be added later if customers are demanding the product
• Funding is also less important, as traction can lead to increased funding
• Examples include Airbnb and Uber, both successful because of their timing (recession and need for drivers), even though conventional wisdom underestimated those factors
• GoTo.com also benefited from timing, as companies needed cost-effective ways to get traffic
• Z.com, on the other hand, failed due to poor timing, as broadband penetration was too low
• YouTube benefited from perfect timing with respect to broadband penetration and the solving of the codec problem
• It is important to honestly assess timing, even if it means delaying a launch until the market is ready
• Startups can change the world, and these insights might help increase success rates, bringing positive changes to the world