B
Evidence Grade B
Graded
accuracy verified by the review judge
Safe to Cite
Recent
42%
42% -- startup failure rate due to lack of market demand for startups (2025)
42% of analyzed startup failures were due to a lack of market demand.
Attribution:
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Lighthouse Research Team
Last verified:
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Source verified
Evidence graded
Value
42%
Unit
Percentage
Data Vintage
2025
Entity
Sample Size
100
Evidence Quality
B
Strong, reliable evidence
Sourced from a well-regarded research firm or industry leader with transparent methodology and a reasonably large sample.
Single source - not yet corroborated
Score breakdown
Extraction
50
Source Trust
60
Citation Chain
20
Independence
30
Methodology
45
Freshness
95
Source
CB Insights
Primary
Tier C
https://lab42.dev/en/blog/mvp-development-key-stages-and-common-mistakes ↗
Source Article
MVP is not about doing less. It's about doing the right thing from the start.
The approaches to MVP development have changed significantly in recent years. New technologies have entered the game, user expectations have risen, and the pace of iteration launches has become a determining success factor…
Original Research
CB Insights
· Original study ↗
Methodology
CB Insights analysis of over 100 startup failure cases; cited secondhand by Lab42
Methodology documented
Segmentation
IndustryStartups
Company SizeSMB
Channelcontent
Cite this stat
Plain Text
startups: 42% startup failure rate due to lack of market demand. Source: CB Insights (2025). Via Lighthouse Intelligence -- https://lighthousedata.io/data/startup-failure-lack-of-market-demand
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<blockquote cite="https://lighthousedata.io/data/startup-failure-lack-of-market-demand" 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 due to lack of market demand for startups<br><small>Source: CB Insights (2025) · <a href="https://lighthousedata.io/data/startup-failure-lack-of-market-demand" target="_blank" rel="noopener">Lighthouse Intelligence</a></small></blockquote>
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