in the tech industry. The study took 6 months to conduct and they wanted to identify the reasons why some
startups succeed, while others fail. As expected, the study found that not raising money, or raising too little money, was a key cause for business failure. With startups tech businesses being some of the most difficult to raise capital for, what are some strategies that the results of the Startup Genome Project would suggest that increase the likelihood of getting funding?
1. Don't Be Afraid to Change Directions
Startups that take major changes in direction once or twice for the betterment of their product are much more successful. These startups raise 2.5 times more money, have 3.6 times higher customer growth rates, and are
52% LESS likely to scale prematurely than startups that pivot more than 2 times or not at all.
2. Don’t Do It Alone
Business teams with just one founder take 3.6 times longer to reach proof of concept stage versus founding teams of two or more. Lone founders are also 2.3 times less likely to make changes in direction for the betterment of the product. The most successful combination is having one business founder and one technical founder.
3. Be Open to Lesson Learned
The most successful startup companies invest in mentors, metrics and education. Startups that have mentors, track performance, and learn from other leaders in their field raise 7 times more money and have 3.5 times
higher customer growth rates.
4. Be Ready to Jump in with Two Feet
Founders that only work part-time on their ventures are much less successful. They realize 4 times LESS customer growth and raise 24 times LESS money from investors.