Problems in the Go-To-Market Process
We here at The Flagship New Products Group want to help your startup succeed. But your question is: why should you need our services in the first place?
The sad truth to put it simply, is that the Go-To-Market (GTM) process of in-market testing that the vast majority of startups use is not working, as there is a 90%+ failure rate for startups.
- 25% of all startups will fail within the first two years;
- 45% of all startups will fail within the first five years.
- Only 1 out of every 10 startups that receive seed money will ever receive Series A Funding, which cripples its chances of success.
That’s not to mention that there are plenty of other problems within the current go-to-market process.
- For instance, it is very time-consuming, taking at the very least 1 year for startups to navigate through the process.
- Most importantly, the greater availability of in-market testing to major competitor Consumer Package Goods (CPG) gives competition an obvious leg up to implement competitive retaliation and knock them off.
- It is also very expensive, costing startups over $1 million.
Costs/ROI to Investors
Speaking of finances, it is important to realize that out of the 4,000 startups every year, top VCs only invest in about 200 of them.
And out of these 200 startups that were hand-chosen by these best of class VCs, only about 30 (yes, 30!) of them will actually generate returns to their investors (Adreseen Horowitz).
After we did the math, this means that every year, the success rate of 0.015% among startups!
In 2019, top VCs invested about $215 Billion into startups. s. This means that every year, about $200 Billion is being mis-invested in startups. After 5 years, this translates to more than $1 trillion that has been mis-invested!
Personal Consequences
Part of a startup is all the personal sacrifices that are made for the company. And when a startup fails, many personal problems arise:
- Friendships and relationships are often lost in the aftershocks of a failed startup.
- Bridges are burned and chaos reigns supreme for a while.
- Some people have put all of their life’s savings into a startup; which means that complete bankruptcy will follow failure in these cases.
- Families and futures may be completely devastated and ruined after a startup has failed.
We here at The Flagship New Products Group strive to help startups overcome all of these hurdles and lead you to success.