B Evidence Grade B Graded accuracy verified by the review judge Safe to Cite Dated

42%

42% -- startup failure rate no market need for failed startups (2021)

2021  · CBInsights

CBInsights research found that 'no market need' was the biggest contributor to startup failures, accounting for 42% of failed startups.

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Attribution: CBInsights View source
Lighthouse Research Team
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Source verified Evidence graded
Value
42%
Unit
Percentage
Data Vintage
2021
Entity
failed startups
B
Strong, reliable evidence

Sourced from a well-regarded research firm or industry leader with transparent methodology and a reasonably large sample.

60/100 confidence

Single source - not yet corroborated

Extraction
75
Source Trust
60
Citation Chain
20
Independence
30
Methodology
45
Freshness
95
CBInsights Primary Tier B
https://www.darkroomagency.com/blog/8-essential-steps-to-scaling-your-dtc-brand ↗
Confidence: 28/100 Vintage: 2021 Channel: Wayback
Source Article
E-Commerce | Featured 8 Essential Steps to Scaling Your DTC Brand - Darkroom
The Observatory Jul 1, 2021 Each DTC brand is part of a unique ecosystem. They ship straight to customers, remove third parties to potentially achieve significantly higher profits, and develop a more memorable brand in the process. Lately, DTC brands have been emerging more and more. However, to suc…
Original Research
CBInsights · Original study ↗

CBInsights research on startup failure causes, cited by Darkroom Agency

Methodology documented
Period Value Change
2021 (current) 42%
2026 42% 0%
IndustryeCommerce Company SizeSMB RoleAll marketers Channelmulti-channel
Plain Text
failed startups: 42% startup failure rate no market need. Source: CBInsights (2021). Via Lighthouse Intelligence -- https://lighthousedata.io/data/no-market-need-startup-failure-42pct
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<blockquote cite="https://lighthousedata.io/data/no-market-need-startup-failure-42pct" style="border-left:3px solid #2563eb;padding:12px 16px;margin:16px 0;font-family:system-ui,sans-serif;background:#f0f4ff;"><strong>42%</strong> -- startup failure rate no market need for failed startups<br><small>Source: CBInsights (2021) · <a href="https://lighthousedata.io/data/no-market-need-startup-failure-42pct" target="_blank" rel="noopener">Lighthouse Intelligence</a></small></blockquote>
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