Why Startups Fail – A response by Jason Fried of 37Signals

Chandesh Parekh
by Chandesh Parekh
in Internet Survival Tips
May 25, 2008

Why Startups Fail is a blog post by David Feinleib at a venture capital company, one he wrote in response to an entrepreneur asking him “why do startups fail?” The post makes for great reading but even better and more insightful is the response by Jason Fried of 37 Signals, a highly successful startup turning over millions of dollars.

37 Signals started out as a web development agency but changed it’s business model by creating and releasing useful web-based applications available to users on a subscription basis. Now 37 Signals concentrates on refining their existing applications and creating new ones, the latest of which is their CRM (customer relationship manager) web application called Highrise.

The great thing about these 2 posts is that we get the opportunity to see this important question, “why startups fail”,  answered from 2 very different perspectives. I think there is merit in both approaches, depending on your particular business model.

Check them out here:

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