CBInsights' ranking of 385 startup failures since 2023 puts running out of capital at the top, but PMF is not far behind.
The chart shows:
• Ran out of capital: 70%
• Poor product-market fit: 43%
• Wrong market timing or macro conditions: 29%
• Unsustainable unit economics: 19%
That’s the useful part for launch strategy. A public launch is not just about reach; it’s one of the fastest ways to test whether the market actually understands the product before more spend, hiring, or roadmap commitments go in.
If the response is weak, the problem is often earlier than growth.
Data source: CBInsights
Related read: Best Places to Launch a Startup in 2026: 25 Platforms That Actually Drive Users, Feedback, SEO, and Revenue