'Most startups are destined to die, Even the funded ones', says CRED CEO Kunal Shah

Fintech unicorn CRED CEO Kunal Shah, in a recent post on LinkedIn, emphasized the harsh realities of the startup ecosystem. He said that most startups are destined to fail, including those that receive funding.

"Most startups are destined to die. Even the funded ones," he wrote.

According to Shah, startup success is almost miraculous. He believes that miracles don't happen with teams that seek stability and dislike ambiguity. Instead, such individuals often hasten the demise of a startup.

He stressed that startups need problem solvers who can navigate uncertainty and adapt to ever-changing circumstances.

"And miracle doesn’t happen with team that’s looking for stability and dislike ambiguity. Having such people in startups mostly causes faster death. Startups need problem solvers," Shah added.

Netizens reaction

Since being shared, Shah's post has received over 7,700 likes. Many people, including startup founders, took to the comment section to share their views on his post.

"Most people with great problem-solving skills still want stability for personal or other reasons. It is the skill of the founder/leadership, to leverage employees' skills while giving them what they want. Expecting everyone to embrace ambiguity all the time, without giving them returns that founders usually get, is delusion," wrote Ankit Shukla, founder of HelloPM.

""Startup success is mostly miracle" - hmmm do people put this in their deck when raising funds :) I would say startup need real problems first. Startups are still businesses that need to become profitable. As long as we view them as something that need miracles to succeed then simply there is no point. Team plays a role but what is the value the startup is generating for its customers determines the success. That's why even unicorns with funds and world class teams perish," another wrote. 

"Startups indeed face immense challenges and a high risk of failure, even with funding. Success often feels miraculous, but it's driven by the relentless dedication of problem solvers who thrive amidst uncertainty. Stability-seekers may struggle, but those who embrace ambiguity and innovate continuously are the true catalysts for turning a startup's potential into reality. Additionally, it's crucial for startups to focus on making money from the very beginning to ensure long-term sustainability. Cheers to the resilient teams that defy the odds!" a third expressed.

"Startups need problem solvers, not for the love of success, but for the sheer kick one gets after solving a problem," a fourth remarked.