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Why startups fail: read the article featuring KindGeek on Yahoo Finance

1 Mins read

10% of startups become dysfunctional in their first year, and 90% fail in the long run. While the statistics might be scary for emerging tech startups and novice entrepreneurs, the good news is that they have got a lot to learn from. 

At Kind Geek, we worked with dozens of startups to develop software that would quickly penetrate the market and be relevant for the final users. During these six years, we have seen both startups that raised billions of dollars of investments and ones that did not work out well. There are a few takeaways we have learned from the close cooperation with startups and individual entrepreneurs. DesignRush and YahooFinance recently shared a few insights from the top-rated software consultants to reveal the biggest mistakes tech startups make when building their products. 

One of those mistakes is measuring once, cutting twice. 

Co-founder and COO of KindGeek, Yuriy Gnatyuk, says investing in the discovery phase pays dividends in the future.

“One of the biggest mistakes companies make in the software development space is starting any kind of coding without the discovery phase (BA, architecture composing, tech stack decision, and UI/UX research planning),” said Gnatyuk. “Each dollar you invest in preparation before the beginning of the project will save you $100 or even $1000 in future development phases and product circles.”

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