Sergey Kartashov (Sergejs Kartasovs) of Generation Partners reveals facts about startups’ failures

Sergey Kartashov (Sergejs Kartasovs), the chief executive officer of Generation Partners, expresses his views on how a startup fails to attract investors and what investors look while choosing a startup to invest in. Moreover, he also talks about some common mistakes made by startups that eventually lead them to death.

What Generation Partners does?

Generation Partners is an IT asset management firm based in Cyprus, one of the most developed IT communities in Europe. Cyprus is a highly beneficial location for Generation Partners as it allows the company to reach potential clients from both Eastern and Western Europe. The island is reachable from every European country in less than three hours.

“Our job is to monitor the market, select startups for investment, and analyze their activities continuously,” said Generation Partners Chief. IT asset management is a complex process as far as the investors with diversified portfolios are concerned. Generation Partners expand and profitably maintain the portfolio of investors. There are some important traits of an IT startup that lead it towards becoming a bigger company. These traits include the unique idea, problem-solving product, a firm business plan, professional management, and strong risk management. However, most of the startups lack these key traits. “As a rule, out of hundred projects, there are a few that are worthy of investor attention,” says Sergey Kartashov.

Why 90% of Startups die during the first year?

The CEO of Generation Partners talks about the reasons behind the failure of most of the startups. “About 90% of startups die during the first year. Of the remaining 10%, half do not survive the following five years,” notes Sergey Kartashov. It is happening because of the common mistakes made by startups related to product development and management. Some startups lose the attention of investors at the first glimpse due to their lack of uniqueness and problem-solving capabilities. The experts know which startups will move on to go big in the coming years based on their analyses.

“Most startups make some common mistakes. You can identify them when studying the project in detail,” highlights Sergey Kartashov. These common mistakes include weak management, lack of a business plan, and lack of a project development strategy. Project development is all about converting an idea into a useful product. However, some unique products and solutions also fail due to weak management. A project development strategy is important for every startup to target the right audience and calculate the scale of the project. Most startups forget to monetize as they do not create a business plan. Investors do not pay attention to a startup that does not have a profitable business plan. These startups lack funds and eventually die quickly. There are various other reasons behind the failure of most startups including conflicts within the team, lack of business experience, lack of funds, and many more.

Sergey Kartashov says that the experts can easily find the weaknesses in a startup by using their analytical skills. However, some investors help startups to finish their unfinished development strategy. They find the right people and talent for them to bring their idea into reality. If a startup misses some important key points, then the investors will not pay attention to it at all. Generation Partners makes thing easier for investors by finding right startups for them.     

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