Steve Blank summarized a prominent Startup Genome study of over 650 early-stage internet startups with these conclusions:
Founders that learn are more successful: Startups that have helpful mentors, track metrics effectively, and learn from startup thought leaders raise 7x more money and have 3.5x better user growth.
Startups that pivot once or twice raise 2.5x more money, have 3.6x better user growth, and are 52% less likely to scale prematurely than startups that pivot more than 2 times or not at all.
Many investors invest 2-3x more capital than necessary in startups that haven’t reached product-market fit yet. Investors also over-invest in solo founders and founding teams without technical co-founders despite having a much lower probability of success.
Investors who provide hands-on help have little or no effect on the company’s operational performance. But the right mentors significantly influence a company’s performance and ability to raise money. (However, this does not mean that investors don’t have a significant effect on valuations and M&A).
Solo founders take 3.6x longer to reach scale stage compared to a founding team of two and they are 2.3x less likely to pivot.
Business-heavy founding teams are 6.2x more likely to successfully scale with sales driven startups than with product centric startups.
Technical-heavy founding teams are 3.3x more likely to successfully scale with product-centric startups with no network effects than with product-centric startups that have network effects.
Balanced teams with one technical founder and one business founder raise 30% more money, have 2.9x more user growth and are 19% less likely to scale prematurely than technical or business-heavy founding teams.
Most successful founders are driven by impact rather than experience or money.
Founders overestimate the value of IP over product-market fit by 255%.
Startups need 2-3 times longer to validate their market than most founders expect. This underestimation creates the pressure to scale prematurely.
Startups that haven’t raised money over-estimate their market size by 100x and often misinterpret their market as new.
Premature scaling is the most common reason for startup failure. They tend to lose the battle early on by getting ahead of themselves.
Anything you can add?