Is Your Startup having Gaps?

In management literature, gap is referred to the difference between the actual performance vis-a-vis potential or desired performance. From the investors' perspective, "gaps" refers to potential deadly or susceptible weak areas, which could threaten the very existence of such startups, and thus aren't right or ready for investment (funding)!



Every Startup has Gaps!

Let's look at the dismal statistics w.r.t Startups:

  • 92% of Startups in India failed to get any funding in 2019 - Business Standard

  • 90% of Indian Startups (like worldover) also fail within 5 years - An IBM & Oxford Study

  • If you study the top 20 reasons of why startups fail (by CB Insights), every single reason hints to a prevailing gap, in each of these failed startups.


Podcast: Valuable Insights by an Entrepreneur, Who Failed the First Time!



What can those Gaps look like?



Some of the prominent gaps, which make the startups non-investable are:

  1. Run of the mill or copy cat of an existing startup

  2. Founders lack vision, passion or perseverance

  3. Inapt team with insufficient domain expertise and missing complementary skills

  4. No traction (Don't pitch to the Investors, if you don't have traction)

  5. Lack of a concrete or scalable business model

  6. Missing unique value proposition and/or unfair advantage

  7. Little or limited market potential

  8. No concrete Go-to Market or Growth strategy

  9. No clarity on future roadmap and milestones

  10. Inherent risks (regulatory, industry, no intellectual property, liability, etc)


Investors assesses for all such gaps, to say "No".


So, when was the last time, you reviewed your startup, to see if there are any prevailing gaps?

 

Resources:

  • Are you raising funds? Register here to get your startup reviewed by 900+ investors!

  • List of 72+ podcasts on JasaRodio, covering (almost) everything on startups!



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