Internet Tech Startups Continue to Fail the Most


  • Since 2010, the majority of funding and deals has gone to the internet sector.
  • A staggering 70% of all dead tech companies (startups) have been in the internet sector (every year since 2010).
  • Out of all the tech sectors, internet easily has the largest proportion of dead companies.
  • The % of companies dying within the internet sector has stayed relatively range bound over the last several years (between 70 – 80%).

Dead_Tech_Cos_By_Sector_2010_to_2013

  • Mobile has seen far more volatility in terms of its share of dead companies, with only 6% in 2010 climbing to 27% in 2012.
  • This trend is likely to continue in the coming years as investors pour billions into mobile-first companies.
  • Companies failing in the Software (non-internet/mobile) and Computer & Hardware services sectors makeup a relatively small %, which suggests that investor interest into such startups remains low but steady i.e. 2 – 3% of the market share.
  • This trend is likely to continue and may reduce even further highlighting funding and deals in these sectors are no longer viable nor profitable.
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