- Elliot Limb, Founder and CEO at Cubed, discussed reasons why fintech startups fail at FinTech LIVE London 2023.
- Limb stated that only 2% of scaleups secure Series D funding, critically suggesting that many businesses should fail earlier due to factors such as bad products or a poor fit with the market.
- According to Limb, 75% of venture investments fail, an issue which led him to found Cubed – a company set to tackle such issues.
Elliot Limb, the visionary behind Cubed, provided an insight on why fintech startups often collapse during his talk at FinTech Live London 2023, held at the QEII Centre in Westminster. A striking statistic he mentioned was that 90% of startups fail within their first three years of operation, and only a meagre 2% of scale ups make it to Series D funding.
Limb strongly suggested that many companies should fail earlier due to reasons such as having a bad product, lacking a solid leadership team, or missing a good product-market fit. He stated: “You can have a bad product, bad leadership team, bad product-market fit, really massive egos — they should just fail early, pivot, whatever you need to do to move on.”
He continued, warning that delaying essential preparatory work till the later stages hampers the chance of success. He recommends that businesses should start implementing necessary operations from Series A-B funding.
However, one of the biggest worries that perturbed him was the high failure rate of venture investments – 75%. Alarming to say the least, the concern directly led him to establish Cubed. Limb questioned why, even when proper investors have seen potential in a product, team, and market, such a high percentage of companies still fail.
Despite many reasons validating such failures, Limb stressed on the devastating impact it has on the hopes and dreams of entrepreneurs and founders. His talk surely ignited a conversation on revisiting the pressing issues that plague the fintech industry, and how to resolve them for a better future.
For more insights on FinTech LIVE London 2023, stay tuned for more content on our website.
