Why Most Startups Die—And My Secret to Defeat the Grim Reaper

While we often celebrate the vivid nature of the startup world, it’s easy to forget the harsh reality: the entrepreneurial landscape is a gigantic graveyard!

The statistic is staggering: In Europe, 90% of startups never make it to their fifth anniversary. Studies and data on startup survival rates reveal that only 2% of them reach successful exits, whether through a merger, acquisition, or IPO.

Behind the 128 European unicorns lie hundreds of thousands of bankruptcies, burnouts, and shattered dreams. Launching a startup is exciting, YES, but for most, the journey ends in tears.

Like any entrepreneur, one of my greatest fears is seeing one of my ventures fail. To avoid this fate, I’ve adopted a game-changing strategy that keeps my startups alive—and thriving.

For this second article in my LinkedIn newsletter Entrepreneurship Unleashed, I've decided to share this insight with you, fellow entrepreneur!

The Main Reason Most Startups Don’t Make It

Most founders become so excited with their ideas that they skip the most critical step: truly validating whether there’s a real demand for the solution they’re building.

Instead of solving a pressing problem, they end up creating products that might be impressive on paper but lack practical value in the real world.

This leads to poor adoption because customers don’t see the solution as a "must-have" but rather as a "nice-to-have"—or worse, irrelevant. Ultimately, these startups run out of time, money, or both, leading to inevitable failure.

Traditionally, founders rely on intuition, assumptions, or market research to launch a business. While I believe these methods bring value, they often miss the most critical factor: what customers truly want. So, let me reveal the secret that has helped me achieve four successful exits to date.

Flipping the Script: Mastering the Art of Reverse Pitching

For me, the key to beating the odds—and achieving success—lies in one simple approach: Reverse Pitching.

When I launch a new venture, I never start by crafting the perfect pitch deck or product. Instead, I sit down with potential customers—not to sell them on an idea, but to listen. Really listen. I ask about their biggest challenges, unmet needs, and deepest frustrations. My goal is to understand their pain points directly from the source.

This is the art of Reverse Pitching. Instead of pushing an idea and hoping it sticks, I pull insights straight from the market and shape my solution accordingly. It’s a collaborative approach, where I co-create the product with my potential customers to ensure it meets their exact needs.

Applying the Insights: From Feedback to Solutions

Once I gather feedback, I don’t just come back with a single solution. I present multiple options to address their pain points. When a customer responds with, “Yes, this one works for us!” I know I’m on the right track.

This early validation from the very people who will pay for the solution later sets the foundation for future success.?

Case Study: How Reverse Pitching Worked for Beyond Business School

When we were developing Beyond Business School, my partner Andra and I didn’t start with a ready-made program. Instead, we reached out to 21 top CEOs in Romania with a simple question:

“What are the most significant challenges you encounter in developing your high performers through MBA and EMBA programs?"

Their answers revealed four significant barriers:

1. High Costs: Tuition and living abroad were major deterrents.
2. Productivity Loss: Extended absences from the office impacted business operations.
3. Personal Sacrifice: Employees struggled to balance family and traditional MBA commitments abroad.
4. Retention Risk: Investing in education didn’t guarantee employees would stay.

The message was clear: “Create an affordable, elitist, fast-track Executive MBA in Bucharest that fits our schedules, and we’re in!”

So, that’s exactly what we did. We launched a fast-track 10-weekend Executive Training Program in Romania, tailored 100% to their input. Our first cohort saw 31 students enrol, many from the very companies we had reverse-pitched.

The Reverse Pitching Approach: A No-Brainer

Building your business around what potential clients actually need drastically reduces your risk of failure. You start with eager partners and clients who have shaped the solution themselves, ensuring that your offerings are aligned with market demand and validated by the very same people who will buy them.

Plus, when these partners contribute their feedback to help craft the solution from scratch, they feel a sense of responsibility and ownership in its creation. They’re not just potential customers; they’re co-creators who have been part of the journey from the start. This involvement makes them more invested in the outcome and more inclined to buy your product because they see it as something they helped bring to life.?

Reverse Pitching: A Continuous Process

Reverse Pitching isn’t just a one-time tactic; it’s a major shift in your business thinking. Instead of trying to convince how great your idea is, let the market shape your ideas. It allows you to launch with confidence, knowing your product is pre-approved and needed.

It’s the difference between hoping for success and launching with certainty.

But Reverse Pitching doesn’t stop at launch—it’s an ongoing process for continuous improvement. In today’s fast-paced, ever-changing world, your business need to evolve constantly. This means clients must continue to provide feedback and share their pain points long after your startup inception, allowing your products and services to grow and adapt to new challenges.

Regular engagement with your customers ensures your business remains relevant and responsive, staying ahead of the curve in a competitive market. Reverse Pitching is a process that never ends.?

So, Stop Pitching, And Start Listening!

To my fellow entrepreneurs, my message is simple: stop selling your ideas to the world. Instead, start Reverse Pitching. Here’s how:

1. Truly Listen First: Engage with your potential clients (as many as you can) and understand their deepest pain points and challenges.
2. Solve Next: Develop a solution that directly address 100% the problems they’ve shared with you. Build accordingly. Iterate methodically. Meet with your future clients again, and again, and fine-tune your solution till you reach THE solution that fits best. Patience is key.
3. Launch with Certainty: When your product is shaped by the market’s needs, your success will most likely follow.?

Caution: Reverse Pitching Decreases Risk Significantly, But Zero Risk Never Exists for Entrepreneurs

While Reverse Pitching significantly reduces the risk of business failure, it doesn’t fully eliminate it. In entrepreneurship, there’s no such thing as zero risk. I’ve experienced failure first-hand myself.

In 2020, I had to shut down a promising startup called Teamway, a corporate carpooling mobile app. We had a fantastic team, a well-built app, and four major corporate partners secured through Reverse Pitching.

However, when the COVID-19 pandemic hit and people started working from home, corporate carpooling became irrelevant, and we had no choice but to stop the project.

Entrepreneurship demands humility, and I won’t sugar-coat the reality: even with the best strategies, there are always factors beyond control. As an entrepreneur, I don’t win every time with my startups, even with Reverse Pitching, because unforeseen circumstances can always change everything in an instant.?

What’s Your Take?

Do you think Reverse Pitching could work for your next venture? Let’s discuss in the comments. Your insights can help other fellow entrepreneurs facing similar challenges!?

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My articles are intended for founders who aim to succeed while staying true to their values. Learn how to navigate the startup world, achieve impact-driven success, and become a leader who inspires others—without losing your soul and health along the way.