Decoding Early Venture Collapse: Why Startups Stumble Before They Stand

Author(s)	Ms. Riya Sandesh Rahane, Ms. Ritika Sunil Dharmkamble, Ms. Mrunal Prashant Khandelwal, Mr. Mandar Ganesh Bodke
Country	India
Abstract	This paper investigates the causes behind early-stage startup failures — specifically ventures that collapse within their first 24–36 months. Drawing on global entrepreneurship studies, venture capital data, and post-mortem analyses, the research identifies five dominant failure drivers: product-market misalignment, financial mismanagement, founding team dysfunction, competitive blindness, and premature scaling. Using thematic synthesis and secondary data analysis, the study finds that startup failures are rarely caused by a single error but rather emerge from compounding strategic, financial, relational, and environmental breakdowns. The paper concludes with evidence-backed recommendations for founders, investors, and policymakers.
Keywords	Early-stage venture failure, entrepreneurial ecosystems, product-market fit, venture capital, cash burn, founding team dynamics, growth strategy, founder psychology
Published In	Volume 8, Issue 3, May-June 2026
Published On	2026-05-26

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