After more than 10 years in the European tech scene, first as a founder and now as a scale-up leader, I’ve seen both sides of the startup journey. At Rydoo, we started with a clear vision and a commitment to solving real challenges for businesses. We learned
that success is shaped far more by hard-won lessons than by luck. Luck is only a small part of the story.
The statistics are tough. Around 10% of startups fail in their first year. By year five, that number rises to about 45%. At ten years, as many as 65% are gone. Of those that survive, fewer
than 1% ever reach €10 million in annual revenue. These numbers might sound discouraging, but understanding why so many don’t make it is the first step to building something that lasts.
I’ve watched promising ideas unravel and seen others break through, which has given me insights into why so few startups make it beyond the early stages. These are some of the hard lessons behind the unlucky 90% and what separates them from the rare successes.
1. The illusion of innovation: building products no one needs
Many startups are born from a burst of creativity. Someone spots a gap in the market, has a brilliant idea, and rushes to build it. But the truth is, ideas are not enough. In fact, the number one reason startups fail is a lack of market need, cited in over
a third of post-mortem reports. Your idea isn’t real until customers confirm it with their time, feedback, and wallets.
The best founders keep talking to users. At Rydoo, some of our best product changes happened because we listened to customers, put prototypes in their hands early, and adapted quickly. Don’t wait for “perfect” before you launch. The most successful products
grow with their users. They start with an in-depth customer discovery — interviews, surveys, and MVPs (Minimum Viable Products) — to understand whether the problem is real, how severe it is, and how people are solving it today.
Customers show you what to build next, what to improve, and what to drop. Roughly half of all startups that make it have to pivot meaningfully before finding the right fit. The difference is that these founders are solving, not just inventing.
2. Running out of cash: death by burn rate
Even the most promising startup can collapse if it runs out of money. In fact, more than 40% of failed startups have. This isn’t due to a lack of investor interest or bad luck, but poor financial management.
Startups are often over-optimistic, overestimating growth, underestimating costs, or raising funds too late. They may even raise a seed round and assume that a Series A is just around the corner. But investor expectations can shift quickly, and market conditions
can change.
Some companies also struggle because they want to look the part, overspending on teams, offices, or marketing before achieving product-market fit. This creates a high burn rate.
The lean, focused teams survive. They prioritise cash flow and build scrappy teams that can do more with less. They treat every euro as if it matters and understand that financial discipline isn’t the opposite of innovation, but rather the foundation of
survival.
Scaling too early, hoping for rapid results, is risky. Find what works first, then accelerate.
3. The wrong team: a house divided cannot scale
Vision alone can’t save a company. Startups do best when the founding team brings together different strengths and shares the same goals. Many startup failures weren’t about skills, but from internal dysfunction: co-founder disputes, mismatched visions,
fragile company culture or lack of key technical talent.
At Rydoo, we learned to hire for attitude, to create a team where everyone is aligned and rowing in the same direction. That’s how we’ve created an environment that thrives.
Successful founders are not just builders; they are recruiters, motivators, and culture-shapers. They know when to delegate, how to hire smart, and how to create an environment where people do their best work, even under pressure.
4. Scaling too fast: growth without a foundation
Ironically, early success can lead to failure. Early wins can tempt startups to chase rapid growth. A wave of new users, press, or investor interest triggers expansion to new markets, to launch new features, or spend heavily on marketing. But if the core
business model isn’t yet solid, this approach can break a company.
Premature scaling stretches teams, infrastructure, and capital to the limit, which often leads to bloated processes, inconsistent customer experiences, and technical debt. Without a clear product-market fit, efforts to scale are like building a skyscraper
on quicksand.
The best startups are patient. They resist the urge to chase vanity metrics or rapid growth. They focus first on retention, customer satisfaction, and on building processes that work at every stage. Only then do they shift to strategic and sustainable expansion.
5. Market forces and timing: the uncontrollable variables
Even with a great product and strong team, the timing isn’t always right. Markets shift. Competitors with more capital emerge. Economic downturns hit, and regulations can change overnight. These are factors no startup can fully control, but for which they
need to be prepared.
Zoom, for one, wasn’t the first video conferencing tool, but it launched just before a global pandemic that drove explosive demand for remote work tools. Timing, combined with strong execution, created a massive opportunity. However, many promising travel
startups failed in 2020, not because of bad ideas, but because the world changed.
The solution is to stay close to your market and be ready to pivot and adapt to new realities. Watch trends, listen to customers, and don’t hesitate to change course when you need to. The startups that survive tough times are quick to adjust, not just tough.
Lessons from the 90%
The last decade taught me that success comes from discipline, adaptability, and a drive to solve real problems. Successful startups validate before building, manage cash as carefully as code, build resilient teams with a shared vision, and grow only when
ready.
They’re not afraid to think big from the start, but understand that failure is not a single event, but a slow erosion of fundamentals.
Startup life is hard and there are no guarantees. But those who are willing to learn, adapt, and listen, especially to customers, can shift the odds in their favour. The goal is not to avoid all mistakes. It’s to discover the right course for you and your
business, and keep moving forward.
For those who do, the rewards are not just financial, but transformative. They get to build something that matters, something that lasts.
