I extracted the most common failure patterns from my 20-year-long...
John Rush@johnrush
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Sep 19, 2025
~4 min read
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I extracted the most common failure patterns from my 20-year-long startup journey.
(spoiler: most successful founders have done the same thing, while failed ones did many different things)
Why Startup Founders Fail:
(spoiler: most successful founders have done the same thing, while failed ones did many different things)
Why Startup Founders Fail:
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1. Solution looking for a problem.
This one accounts for over 50% of failures I've seen & done. Founders build a solution first and then go to users, pitching it and trying to convince them they have such a problem.
The problem often isn't serious enough to change their habit.
This one accounts for over 50% of failures I've seen & done. Founders build a solution first and then go to users, pitching it and trying to convince them they have such a problem.
The problem often isn't serious enough to change their habit.
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2. They like it, but won't pay.
Happens in b2b. You start with a generous free tier or a long trial. Later, you see nobody upgrades to a paid tier.
You think you must massage the pricing model, but the product isn't usually worth paying.
Often happens to "vitamin" products.
Happens in b2b. You start with a generous free tier or a long trial. Later, you see nobody upgrades to a paid tier.
You think you must massage the pricing model, but the product isn't usually worth paying.
Often happens to "vitamin" products.
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3. Failed to monetize b2c.
Once, I built an app with over 100k users, and was 1st on App Store with an award. But once I wanted to monetize it, I realized it was impossible to make good money here.
FB makes money on its users because of their time in the app (hours daily).
Once, I built an app with over 100k users, and was 1st on App Store with an award. But once I wanted to monetize it, I realized it was impossible to make good money here.
FB makes money on its users because of their time in the app (hours daily).
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4. Raised VC money for a non-unicorn idea.
VCs make 100 bets. You're just one of 100. The chance you fail is 99%, because for VCs anything is a failure except unicorns.
You could turn it into $10m/year biz in a bootstrapped mode, but VCs will force u to bankrupt such company.
VCs make 100 bets. You're just one of 100. The chance you fail is 99%, because for VCs anything is a failure except unicorns.
You could turn it into $10m/year biz in a bootstrapped mode, but VCs will force u to bankrupt such company.
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5. Wrong cofounder.
When 2 people start a company, and 1 quits, the other one isn't that crazy about working their ass off for this startup to succeed.
Most startups I know that lost one of their cofounders early failed. I think cofounders bring more risk than upside.
When 2 people start a company, and 1 quits, the other one isn't that crazy about working their ass off for this startup to succeed.
Most startups I know that lost one of their cofounders early failed. I think cofounders bring more risk than upside.
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6. Small market.
In Norway, where I spent most of my life building my startups, most would first start with a local market.
I thought it was smart, but the aftermath of the last 15 years shows that it was the reason for the downfall of the Norwegian startup ecosystem.
In Norway, where I spent most of my life building my startups, most would first start with a local market.
I thought it was smart, but the aftermath of the last 15 years shows that it was the reason for the downfall of the Norwegian startup ecosystem.
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7. Outsourcing.
Think of it as hiring someone to raise your child.
This is a terrible idea in most cases.
Same for a startup. The single best predictor for a startup's failure is the fact that they outsource their tech.
Even worse: they outsource their marketing (before PMF)
Think of it as hiring someone to raise your child.
This is a terrible idea in most cases.
Same for a startup. The single best predictor for a startup's failure is the fact that they outsource their tech.
Even worse: they outsource their marketing (before PMF)
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8. Building a vitamin, not a painkiller.
Many founders don't have ideas. So they squeeze the idea out of the air, which often is a vitamin. It makes sense, but people can perfectly live without it.
A painkiller: u pitch someone & they nag you every week asking for access.
Many founders don't have ideas. So they squeeze the idea out of the air, which often is a vitamin. It makes sense, but people can perfectly live without it.
A painkiller: u pitch someone & they nag you every week asking for access.
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9. No passion for an audience & field.
The founder must understand the audience really well. As well as themself. To do so, one must have a deep interest and be able to become an expert in the area.
Can't build a tool for SEO people if u have no passion for SEO.
The founder must understand the audience really well. As well as themself. To do so, one must have a deep interest and be able to become an expert in the area.
Can't build a tool for SEO people if u have no passion for SEO.
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10. Lack of focus.
Coding is easy now, and I see too many founders jumping from idea to idea every month.
Nothing wrong with it, but for most, it'd make more sense to pivot existing ideas, instead of jumping into new ones.
It's best to become an expert in one field.
Coding is easy now, and I see too many founders jumping from idea to idea every month.
Nothing wrong with it, but for most, it'd make more sense to pivot existing ideas, instead of jumping into new ones.
It's best to become an expert in one field.
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11. Not using their own product.
Most b2b founders are also potential users of their own products. But shockingly, most don't use their own products.
I use my products, even if better products are on the market. It helps me in my users' shoes and feel the urge to fix it.
Most b2b founders are also potential users of their own products. But shockingly, most don't use their own products.
I use my products, even if better products are on the market. It helps me in my users' shoes and feel the urge to fix it.
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12. Not validating.
- validating if people care about the problem
- if they wanna sign up to the waitlist
- if they wanna put a pre-order and pay for it
But most importantly: if you have the ability to communicate with this audience
- validating if people care about the problem
- if they wanna sign up to the waitlist
- if they wanna put a pre-order and pay for it
But most importantly: if you have the ability to communicate with this audience
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13. Growing on non organic channels.
Most founders I knew(including myself) used VC money to grow on paid ads, sponsorships and partnerships.
It brought the growth needed to raise next rounds, but eventually it was doomed to fail.
Organic growth is a way to validate the biz.
Most founders I knew(including myself) used VC money to grow on paid ads, sponsorships and partnerships.
It brought the growth needed to raise next rounds, but eventually it was doomed to fail.
Organic growth is a way to validate the biz.
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14. Didn't plan for a marathon.
Most founders think it'll take max 5 years to succeed.
Some think it takes 1-3 years.
In reality, it may take 7 to 10 years.
Over 50% of founders I knew quit the game due to a burnout. Most were upset on the year 5 being still not successful.
Most founders think it'll take max 5 years to succeed.
Some think it takes 1-3 years.
In reality, it may take 7 to 10 years.
Over 50% of founders I knew quit the game due to a burnout. Most were upset on the year 5 being still not successful.
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15. Out of money for bootstrapped.
Some quit their jobs to spend a year building a startup using their savings.
This is a terrible idea.
U cant predict the time it takes to profits.
So keep the job or have some side gig that brings some money while you work on a startup.
Some quit their jobs to spend a year building a startup using their savings.
This is a terrible idea.
U cant predict the time it takes to profits.
So keep the job or have some side gig that brings some money while you work on a startup.
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16. Not willing to learn, fixed on delegating.
Founders thinking: I'm the general, I'll find people better than me in each position, delegate & we will win cuz that's what Steve Jobs said.
In reality, founders must do all important work until PMF. Employees can't handle it.
Founders thinking: I'm the general, I'll find people better than me in each position, delegate & we will win cuz that's what Steve Jobs said.
In reality, founders must do all important work until PMF. Employees can't handle it.
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17. Besides the failures, I’ve built stuff millions use:
unicornplatform.com website & directory builder
listingbott.com ai agent to lists you on all relevant web directories
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more: johnrush.me
unicornplatform.com website & directory builder
listingbott.com ai agent to lists you on all relevant web directories
seobotai.com ai to run your blog 100% on autopilot
more: johnrush.me