The number one reason startups fail is lack of market need for the product:
CB Insights recently parsed 101 post-mortem essays by startup founders to pinpoint the reasons they believe their company failed. On Thursday the company crunched the numbers to reveal that the number-one reason for failure, cited by 42% of polled startups, is the lack of a market need for their product.
That should be self-evident. If no one wants your product, your company isn’t going to succeed. But many startups build things people don’t want with the irrational hope that they’ll convince them otherwise. source
CBS Insights analysis report.