Why Most Startups Don’t Make It

Startups bring innovation and energy—but they’re also risky. Around 90% of startups fail, and about 70% don’t survive beyond five years. Many collapse due to poor market fit, overspending, or founder burnout. 

To succeed, startups need more than just a great idea—they need a solid foundation.

According to Harvard Business Review, there are a few keys founders can take notes on to achieve a sustainable business:

1. Stay mission-driven

A clear purpose beyond making money helps guide decisions and motivates your team. Purpose-driven startups are more likely to build lasting connections with customers and partners.

2. Be financially smart

Keep spending in check. Sustainable startups build lean operations and focus on essentials to avoid running out of funds too soon.

3. Focus on people and customers

Hire adaptable people who believe in your mission, and always listen to customer feedback to improve your product or service.

4. Plan for scale

Set up simple, scalable systems early on and grow at a pace you can handle. Avoid rushing into rapid expansion without the right foundation.

A Real Example: Grab

Grab began as a ride-hailing app in Malaysia and has since evolved into Southeast Asia’s leading super app. From the beginning, Grab focused on solving real transportation problems while growing responsibly. It tapped into local startup ecosystems for mentorship, expanded gradually across markets, and continuously adapted its services based on customer needs.

Crucially, Grab partnered with governments, local businesses, and communities, building trust and strengthening its position in the region. This strategic, feedback-driven approach helped it evolve into a sustainable and influential tech company.

At Innovation Factory, we empower founders across Southeast Asia to grow their startups with purpose. Through upskilling programs, access to markets, and strong networks of investors, mentors, and corporate partners, we help startups scale responsibly and build meaningful, lasting businesses.

We’re here to help founders grow with purpose—and build companies that last. Let’s grow something that matters. Click here to connect with us.